Stock Market today: On Wednesday, the domestic benchmark indices, Nifty 50 and Sensex, showed a subdued performance as they mirrored the cautious sentiment in Asian markets, primarily driven by ongoing concerns about a potential global tariff war. However, shares of the Adani Group saw a positive uptick following recent declines attributed to the indictment of several senior executives in the US.
In early trading, the Sensex gained 166.1 points, reaching 80,170.16, while the Nifty 50 rose by 74.35 points, climbing to 24,268.85. This mixed performance reflects the prevailing market anxieties alongside some recovery in specific sectors.
Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that President-elect Trump has begun outlining his actions to be implemented upon taking office on January 20th. He has already announced a 25% tariff on imports from Mexico and Canada, along with an additional 10% tariff on Chinese imports. It remains to be seen how these countries will respond to these tariffs. Trump's decision to impose only a 10% additional tariff on Chinese goods suggests that he is cautious about triggering imported inflation in the United States.
Nifty 50 has been witnessing a breather ahead of the monthly derivative expiry after a swift 1000 pt rally in 2 trading days. With this strong price action on back on domestic and global cues clubbed with reduced FII outflows is likely to help the index gain past 24,550 with 24,000 acting as psychological support. Momentum is likely to pace up after the monthly derivative expiry is cleared on coming Thursday.
Bank Nifty has recovered 27,00 points after taking support at its 200 DMA in a matter of 4 trading sessions. The index continues its outperformance against Nifty 50 as the MTD returns on this index stand at 1.39% against -0.04% on Nifty 50 . Charts suggest that after such a huge short covering rally the index is likely to consolidate between 52,000 – 52,600 this week before breaking out higher above 52,600. The ongoing outperformance is likely to continue once Bank Nifty closes above 52,600.
On stocks to buy or Sell on Thursday, Sagar Doshi of Nuvama recommended three stocks - Cochin Shipyard Ltd, JK Tyre & Industries Ltd, and Bharat Dynamics Ltd.
Having corrected over 55% in 5 months of correction, Cochin Shipyard has shown strong signs of a short term reversal. Never in this corrective wave the stock has shown 3 consecutive day’s of strong buying on the scrip. This price action has brought the stock from a 7 month low to a 3 week high in flat 3 trading days. Ongoing reversal move could extended northwards of 1550 odd with 1400 as strong buyers zone.
JK Tyre & Industries Ltd (BUY): LCP : ₹370.95; Stop Loss : ₹350; Target Price : ₹410
JK Tyre has been repeated finding support in range of 355 – 360 multiple times in the past 7 months of trade. The stock has closed above its previous day’s high and has already shown buying signs from the same reversal zone. A quick 9-10% bounce could easily unfold given the support and sector cues.
Bharat Dynamics has given a breakout from its 5 month sloping trendline which suggests that stock could reach out to its 200 DMA resistance which is 12-14% higher than CMP. BDL has corrected 50% from its all time high in the past 4 months and this trendline breakout suggests a short term bounce back to play out in the coming days.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
