The Indian stock market demonstrated resilience amidst rising geopolitical tensions following Operation Sindoor. On Wednesday, the market closed slightly higher, with the Nifty 50 index gaining 34 points to reach 24,414. The BSE Sensex also experienced a boost, climbing 105 points to finish at 80,746, while the Bank Nifty index soared by 339 points, ending at 54,610. Investors showed significant interest in the Auto, Consumer Durables, and Realty sectors, while FMCG, Healthcare, and Pharma faced declines.
Market Movements and Sector Performance
- Auto Sector Rally: The auto industry surged following the recent Free Trade Agreement (FTA) with the United Kingdom and the Double Contribution Convention.
- Mid-cap and Small-cap Recovery: After a period of underperformance, mid-cap and small-cap stocks bounced back strongly. The Nifty Midcap 100 Index increased by 1.6%, while the Nifty Small-cap 100 Index rose by 1.38%, signaling a resurgence of investor confidence in these market segments.
- Positive Market Breadth: The market breadth turned favorable, with advancing shares surpassing declines, culminating in a BSE advance-decline ratio of 1.31.
Insights from Market Analysts
Siddhartha Khemka, Head of Research at Motilal Oswal, highlighted the potential impact of the US-India trade deal on export-driven sectors. He noted that upcoming corporate earnings and macroeconomic data from the US are crucial factors to watch, suggesting that the market may experience short-term consolidation based on these developments. Notable earnings announcements are on the horizon, including companies like L&T, Britannia, Titan, Pidilite, Biocon, Bharat Forge, Union Bank, and Canara Bank.
Technical Analysis and Predictions
Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, pointed out a rising wedge pattern in the Nifty. A drop below 24,200 could signal a temporary downturn, while a breakthrough above 24,600 may reinvigorate bullish momentum.
Hrishikesh Yedve from Asit C. Mehta noted that Bank Nifty exhibited a Piercing Line candlestick formation, indicating robust buying pressure. He identified immediate resistance at 55,000 and 56,000, with key support around 53,890.
Stocks to Watch Under ₹100
Market experts have identified promising stocks to consider for intraday trading:
- NTPC Green Energy: Buy at ₹97 to ₹99, with targets set at ₹101, ₹104, and ₹107. A stop loss is recommended at ₹94.
- Suzlon Energy: Purchase at ₹54 to ₹54.70, targeting ₹55.60, ₹57.50, and ₹59, with a stop loss at ₹52.80.
- Manali Petrochemicals: Suggested for buying on dips at ₹52.50, with a target of ₹55.40 and a stop loss at ₹51.
- Dolat Algotech: Recommended to buy at ₹80.50, with a target of ₹85 and a stop loss at ₹77.
Keep an eye on these stocks as they may offer lucrative opportunities amidst the current market landscape.
