The Indian stock market took a breather on Wednesday after a robust seven-day upswing. Both the BSE Sensex and Nifty 50 indices dipped into negative territory as investors awaited details on possible US tariffs. This pause in momentum allowed traders to reassess recent gains amidst ongoing geopolitical tensions, leading to a notable sell-off in major sectors like banking, IT, and metals.
Market Performance Overview
- Nifty Mid-cap and Small-cap indices faced profit-taking for the second day in a row.
- The Nifty Midcap 100 index saw a decline of 0.62%, while the Nifty Small-cap 100 index fell by 1.07%.
- The BSE advance-decline ratio was recorded at 0.30, signaling overall market weakness.
- Except for Nifty Auto, which closed slightly positive, all other sectoral indices finished the day in the red, with Nifty Media, Oil/Gas, Realty, and Healthcare sectors being the most affected.
Expert Insights on Market Sentiment
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintains an optimistic outlook for the Indian stock market. She notes that the Nifty 50 index continues to remain above 23,500, signifying a favorable trading environment. According to Parekh, the sentiment will lean towards buying on dips as long as the index stays above 23,000.
Parekh elaborated, “Following a positive opening, the Nifty 50 struggled to build on momentum, leading to profit booking after last week’s strong rally. The index concluded near the 23,500 mark, keeping a positive bias as it navigates crucial support around 23,000. The 50-day EMA positioned at 23,100 is essential for maintaining market sentiment.”
Banking Sector Outlook
The Bank Nifty index experienced a gradual downturn during the trading session, ultimately closing near 50,200. Parekh suggests that support is being held near the significant 200-period MA at 51,000, and with the current bias intact, a recovery could be on the horizon if it remains above the 100-period MA at 50,350.
For today, Parekh identified key support levels for the Nifty at 23,300 and resistance at 23,700. The Bank Nifty is expected to trade within a range of 50,800 to 51,800.
Stock Recommendations for Intraday Trading
For those looking to navigate the market today, Parekh has highlighted three stocks that are worth considering:
- Jio Financial Services: Sell at ₹223, target ₹212, stop loss ₹226.
- Reliance Infrastructure: Buy at ₹254, target ₹280, stop loss ₹240.
- Solar Industries: Buy at ₹10,955, target ₹11,600, stop loss ₹10,600.
As traders adjust their strategies amid fluctuating market conditions, keeping an eye on these recommendations could provide valuable insights for navigating today’s trading session.
