The stock market opened with a slight uptick on Wednesday, as the Sensex and Nifty 50 indices adjusted after notable gains in recent trading sessions. Investors are currently weighing changes to U.S. tariffs, which has added a layer of complexity to market movements. Early trading saw the Sensex drop by 165.3 points, settling at 76,569.59, while the Nifty 50 experienced a decrease of 51.55 points, landing at 23,277.

Recent Market Trends

On Tuesday, both major indices surged over 2%, buoyed by a strong performance in international markets. This upswing followed announcements from U.S. President Donald Trump, who relaxed certain tariffs on electronic goods and proposed adjustments to auto duties. However, U.S. stock markets experienced a slight decline, reflecting ongoing uncertainties surrounding tariff policies. Notably, shares in the consumer and healthcare sectors faced setbacks, though positive banking results provided some market support.

Asian Market Performance

Asian markets opened on a downtrend today. The Nikkei 225 in Japan fell by 0.5%, while South Korea’s Kospi and Kosdaq indices also recorded losses. The Hang Seng index in Hong Kong was down roughly 1%, and Taiwan’s primary index faced similar declines.

Inflation Insights

In March, India’s consumer price inflation plummeted to a 67-month low of 3.34%, the lowest since 2019. This decline is largely attributed to falling food prices, prompting economists to forecast a potential rate cut by the Reserve Bank of India during its upcoming policy meeting in June.

Market Outlook by Jay Thakkar

Jay Thakkar, Vice President and Head of Derivatives and Quant Research at ICICI Securities, provides valuable insights on the Nifty 50. He noted that the index opened strongly, closing above the 23,000 mark, effectively breaking through its resistance range of 22,800 to 23,000 levels.

• Immediate support is now set at 23,300, with a broader support level at 23,000.
• Resistance is anticipated at 23,500, with the short-term range lying between 23,300 and 23,500.

Thakkar points out that the India VIX has significantly decreased to 16, suggesting that short-term market anxiety has subsided, which is positive for equities. The trend appears upward, and he recommends purchasing the index on dips with positional targets set at 23,500, potentially reaching 23,800.

Recommended Stocks for the Short-Term

Thakkar also shares stock recommendations for investors looking at the near term:

• LIC Housing Finance Futures: Buy in the range of ₹586-590.

  • Targets: ₹600 and ₹610
  • Stop Loss: ₹575
  • The stock has shown signs of recovery after a significant correction, suggesting a potential for further upward movement.

• Zydus Lifesciences Futures: Purchase between ₹879 to ₹883.

  • Targets: ₹920 and ₹940
  • Stop Loss: ₹858
  • After a steep decline, the stock appears to be reversing its trend, supported by increased put writing.
• IDFC First Bank Futures: Enter at ₹61.80 to ₹62.20.
  • Targets: ₹65 and ₹67
  • Stop Loss: ₹59
  • The stock has rebounded from a downtrend, signaling potential for further gains.

Final Thoughts

As market dynamics fluctuate, investors are encouraged to stay informed and consider expert recommendations. The current landscape presents opportunities for those looking to navigate the complexities of the stock market effectively. For more insights into stock trends and market predictions, explore additional resources and expert analyses.