The stock market landscape on Wednesday remained stable, with the domestic indices Nifty 50 and Sensex holding onto their recent upward momentum. This resilience is attributed to robust local economic fundamentals and a relatively low impact from U.S. trade tensions, allowing India’s markets to outperform their regional counterparts. As of 11:27 IST, the Nifty 50 was steady at 23,330.85, while the Sensex hovered around 76,714.48, following a notable 4% rally over the past two trading sessions.
Market Performance Overview
- Nifty 50: 23,330.85
- Sensex: 76,714.48
- Recent Rally: Approximately 4% in two sessions
- MSCI Asia ex-Japan Index: Down by 5% since April 2
Since the announcement of reciprocal tariffs by former U.S. President Donald Trump on April 2, Indian stock indices have shown resilience compared to their regional peers. Despite the indices remaining flat since then, the broader MSCI index has faced a decline of more than 1% recently.
Expert Insights on Market Stability
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the current market outlook is encouraging, especially with the Nifty recovering losses from the April tariffs. However, he cautions investors against assuming that a stable upward trend has emerged. The ongoing U.S.-China trade tensions, exacerbated by China’s recent decision to halt rare earth exports, may introduce further volatility. Dr. Vijayakumar emphasizes the importance of focusing on domestic consumption sectors, which are likely to be more resilient amidst global uncertainties.
Nifty 50 Analysis by Sagar Doshi
Sagar Doshi, Senior Vice President of Research at Nuvama, highlights that the Nifty 50 has rebounded more than 1,600 points from its lows just last Monday. The index is nearing a positive monthly performance, despite being slightly in the red so far this month. This recovery, which surpasses last month’s rebound from below 22,000, reflects the market’s digestion of the Reserve Bank of India’s rate cuts and easing global trade tensions.
- Key Levels: Closing above 22,800-22,900 indicates a potential for buying on dips, aiming to surpass 24,000.
- Daily Range: Traders should look to buy within the 23,200 – 22,900 range for upcoming upward movements.
Bank Nifty’s Strong Performance
The Bank Nifty index has been a standout performer during recent market corrections, maintaining a stable range throughout the year. While global tariff concerns have impacted broader markets, the Bank Nifty has shown resilience, bouncing back significantly after a 61.8% retracement.
- Buy on Dip Levels: Suggested range between 49,900 and 50,400, targeting 52,500.
- Current Position: At four-month highs, a consolidation phase between 51,800 and 52,800 is anticipated as the Nifty takes the lead.
Recommended Stocks for Today
As for stock recommendations, Sagar Doshi has identified three promising picks for investors:
-
Indian Railway Catering and Tourism Corporation Ltd (IRCTC)
- Current Price: ₹754.50
- Stop Loss: ₹734
- Target Price: ₹825
- Rationale: The stock has broken out of a ten-month downtrend, indicating a potential 10% upside.
-
Jubilant FoodWorks Ltd
- Current Price: ₹701
- Stop Loss: ₹673
- Target Price: ₹755
- Rationale: After a three-month correction, the stock is poised for a 6-8% upside.
- Shree Cement Ltd
- Current Price: ₹31,125
- Stop Loss: ₹30,100
- Target Price: ₹33,770
- Rationale: This stock is experiencing significant strength, with expectations of an 8-10% increase as it aims for new all-time highs.
As investors navigate the complexities of the current market environment, focusing on these highlighted stocks and the underlying economic indicators may provide strategic advantages for the days ahead.
