The stock market kicked off the holiday-shortened week with a bang, buoyed by positive global indicators. The Nifty 50 index surged by 2.19%, reaching 23,328.55, while the Bank Nifty climbed 2.7% to finish at 52,379.50. Encouraging performance was seen across most sectors, particularly in realty and automotive, with midcap and smallcap indices also enjoying nearly 3% gains.
Trade Outlook for Wednesday
The Nifty has successfully crossed key moving averages, reclaiming levels above the 20, 50, and 100-day EMAs. According to Nandish Shah, Deputy Vice President at HDFC Securities, the next hurdle for the Nifty is anticipated to be around 23,869, while immediate support is expected in the 22,900-23,000 range.
In the case of the Bank Nifty, the breakout level of 52,000 will serve as immediate support. As long as it stays above this mark, analysts predict it could ascend towards the 52,700-52,800 range, as noted by Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates.
Global Market Trends and Q4 Earnings
Attention is now shifting to critical Q4 earnings reports, including those from ICICI Lombard, ICICI Prudential, and Wipro, with expectations of sustained market momentum. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, highlights that a positive outlook surrounds global trade agreements and the easing of U.S. tariffs. Specific sectors will likely see heightened activity based on quarterly results and management insights.
Recommended Stocks for Today
Sumeet Bagadia, Executive Director at Choice Broking, has identified two key stock picks for today. Additionally, Ganesh Dongre from Anand Rathi suggests three stocks, while Shiju Koothupalakkal from Prabhudas Lilladher recommends another two stocks. Here’s a closer look:
Sumeet Bagadia’s Picks
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AU Small Finance Bank: Suggested entry at ₹576 with a stop-loss at ₹557 and a target of ₹618. The stock is showing signs of a potential trend reversal after a prolonged downtrend.
- Torrent Power: Recommended buy at ₹1,623.60, targeting ₹1,738 with a stop-loss at ₹1,566. The stock is demonstrating strong bullish momentum with consistent higher highs.
Ganesh Dongre’s Picks
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Astral: Recommended entry at ₹1,295, with a stop-loss at ₹1,260 and a target of ₹1,340. A bullish reversal pattern suggests potential upward movement.
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Alembic Pharmaceuticals: Suggested buy at ₹845 with a target of ₹880 and a stop-loss at ₹825. The stock shows signs of a bullish reversal pattern.
- Dabur India: Buy at ₹473, targeting ₹490 with a stop-loss at ₹463. The stock is also showcasing a bullish reversal pattern.
Shiju Koothupalakkal’s Recommendations
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Welspun Corp: Suggested buy at ₹783, targeting ₹850 with a stop-loss at ₹755. The stock is recovering strongly, indicating a positive trend.
- Bharat Heavy Electricals Ltd (BHEL): Recommended buy at ₹221.80, targeting ₹235 with a stop-loss at ₹216. The stock is in consolidation but shows potential for an upward move.
With these insights and stock recommendations, investors might find opportunities to capitalize on the current market dynamics. Always consider your investment strategy and risk tolerance before making decisions.
