Stock Market News: The domestic benchmark indices, Sensex and the Nifty 50 had a flat start on Wednesday's trade amid mixed global cues. Following a nine-session surge that saw the benchmark Nifty 50 hover just below all-time highs, experts anticipate that trading will be close to current levels ahead of this week's important macroeconomic data.
As of 10:03 IST, the Nifty 50 index was down a little 0.03% at 25,010.80 Additionally, the Sensex fell by 0.05% to 81,670.07.
Geojit Financial Services' Chief Investment Strategist, Dr. V K Vijayakumar, believes that the market has entered a phase of consolidation with minimal volatility, and that this trend is expected to continue in the foreseeable future. US bond rates have fallen, which has stopped FII selling and even caused them to become marginal purchasers. If FIIs keep buying, DIIs are probably going to sell based on past trends. The market will remain in a range with a modest higher bias thanks to this trend. Considering the high market values, this is a positive and healthy trend.
Nifty 50 is back above the 25k mark registering the highest ever closing on daily charts as the index is on track towards 25,150 / 25,280 after reclaiming 24,840 crucial resistance in last week's trade. Support can now be trailed higher to 24,750 odd which is also its 10 day EMA. We reiterate the view of daily charts open for scaling to new highs and dips bear 24,800 should be bought for the above shared targets.
Bank Nifty has closed at the highest level in the past 3 weeks now after it ended its sideways consolidation last week. Bank Nifty is on the verge of starting an outperformance to the Nifty 50 once a close above 51,300 is visible. For now 50,800 is likely to act as support on the downside while upside has opened for 51,800/52,100 after it completed initial target of 51,300 during day trade earlier this week.
On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:
According to Sagar, Bharti Airtel has closed at the highest ever closing on daily charts along with a breakout of cup and handle formation over the past 8 odd weeks. The stock is now out of consolidation heading for newer uncharted orbits. A higher low formation was spotted all through the past 8 weeks of consolidation and this could led to a potential 100 pt upmove on the stock which results into 6-7% move on the upside.
Doshi stated that after retesting its previous breakout zone in mid – August, JSW Energy is now back on track to hit fresh all time highs. The stock is positioned to breakout of its 2 month consolidation in the day’s to come. Clubbed with a 6 week high closing on daily charts, momentum is set to kick in once a tiny hurdle of 743 is crossed in trade. A 5-7% run up to new highs is likely to unfold based on the current set up on technical charts.
According to Doshi, after nearly 9 years of correction and consolidation, Lupin has finally made a fresh all time high. The stock has been in strong bull grip garnering over 40% in the past 2 months while the Nifty Pharma index has gained 15% in comparison. Outperformance has unfolded and is set to continue given the record highs printed on daily and weekly charts of Lupin. For now, we expect a 9-10% follow up move based on the price action seen this week.
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.
