On Wednesday, the Indian stock market displayed resilience amidst rising tensions from the India-Pakistan conflict following Operation Sindoor. The market closed with a slight uptick, as the Nifty 50 index rose by 34 points, reaching a total of 24,414. The BSE Sensex also gained, finishing 105 points higher at 80,746, while the Bank Nifty index saw a robust increase of 339 points, closing at 54,610.
Sector Performance and Market Trends
Several sectors drove the market’s positive momentum, particularly Nifty Auto, Consumer Durables, and Realty, which emerged as the top performers. Conversely, FMCG, Healthcare, and Pharma sectors struggled, ending the day in negative territory. The auto sector, in particular, experienced a significant rally, driven by the recent Free Trade Agreement (FTA) with the United Kingdom and the implementation of a Double Contribution Convention.
Interestingly, the mid-cap and small-cap segments rebounded strongly after a previous day of underperformance. The Nifty Midcap 100 Index surged by 1.6%, while the Nifty Small-cap 100 Index climbed by 1.38%, signaling a renewed investor confidence in these broader market segments. The overall market breadth improved, with more advancing shares than declining ones, leading to a BSE advance-decline ratio of 1.31.
Expert Insights on Market Sentiment
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, commented on the cautious positivity permeating the Indian stock market. She highlighted that the Nifty 50 index’s position above the critical support level at 24,300 could present buying opportunities on dips, provided it remains above the 200-day Exponential Moving Average (DEMA) at 24,050.
Discussing the day’s trading, Parekh noted, "The Nifty 50 index opened lower around the 24,220 mark but managed a significant recovery. The index remains precariously positioned near the 24,300 support level, indicating cautious sentiment as geopolitical tensions persist. It’s essential to maintain the support at 24,050 for continued stability."
Key Levels for Nifty and Bank Nifty
In terms of levels to watch, Parekh identified 24,200 as support and 24,600 as resistance for the Nifty 50. For the Bank Nifty, the anticipated daily trading range lies between 54,000 and 55,200.
Stock Recommendations for Investors
For those looking to make informed trades today, Parekh has suggested three stocks to consider:
-
Zen Tech:
- Buy at ₹1,384
- Target ₹1,420
- Stop Loss ₹1,350
-
Dredging Corporation of India:
- Buy at ₹569
- Target ₹600
- Stop Loss ₹550
- Shriram Finance:
- Buy at ₹637
- Target ₹665
- Stop Loss ₹622
In summary, while geopolitical tensions loom, the Indian stock market showed a commendable performance Wednesday, with key indices closing higher. Investors are advised to keep an eye on market fluctuations and specific stock recommendations as they navigate this cautious landscape.
