Stock Market News: For the second straight day, the domestic benchmark indices, the Sensex and Nifty 50, reached all-time highs on Wednesday. Leading the way was HDFC Bank, a leading private lender, which surged to an unprecedented level on expectations of a potential rise in its weightage in a significant global index.
As of 9:55 a.m. IST, the S&P BSE Sensex gained 0.7% to 80,004.23 points, while the Nifty 50 was up 0.68% at 24,285.5 points. For the first time ever, intraday trading saw the Sensex exceed the 80,000 threshold.
With a 3.5% opening gain, HDFC Bank led the Nifty 50 higher. In both benchmarks, the lender's stock has the most weight.
The centre of market action today, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, ought to be HDFC Bank, which will keep moving upward despite reports that it may increase the weightage of its shares in the MSCI Index.
The most recent Fedspeak over US inflation is also good news for global equity markets, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. In response to yesterday's 2.6% inflation figure with a 0% month-over-month gain, Fed Chairman Powell stated dovishly that the US is headed toward deflation. A rate reduction is probably what the Fed will do next. The RBI is probably going to decrease rates at the upcoming policy meeting as well.
Nifty 50 continues to hold and make fresh all-time highs, week after week – with 23,950 levels as well scaled is last week’s trade, the index is now likely to take this 23,800 – 23,950 range as support zone for further legs upside towards 24,300 / 24,400. With no upcoming events lined up for the current week, only minor profit taking if any could dent the ongoing strong rally at record highs on Nifty. India VIX also suggest no unexpected volatility on cards for the first half of this month. Nifty has not closed below its previous day’s low for the past 4 weeks now indicating a strong uptrend.
Bank Nifty has been facing supply near the 53,000 zone, with index closing below its previous 2 day’s low in last week’s trade. A retest of 51,700 remains open on cards, until then the index is likely to continue its ongoing underperformance to the Nifty 50. Support to the ongoing move on Bank Nifty stands at 51,600. A fresh down-leg could only start after 51,600 is taken down on a closing basis.
On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:
With price hike taken by paper players, stocks have come into focus since the start of this week. GST rate cut from 18% to 12% on cartoon boxes as well as non-corrugated paper boxes has acted as a trigger for the ongoing upmove. Stock had given a 200 DMA breakout in mid week of June 2024, but had been consolidating since then. A follow up move have now commenced and is likely to take this stock higher based on current breakout.
Ever since its stock spilt in August 2021 the stock has been off the record high charts losing its momentum it had running up to the stocks split. The stock is steadily holding above its 200 DMA breakout since the past 3 weeks now and patterns suggest a strong up move from hereon.
Stock has been holding above the 200DMA breakout along with a higher low formation seen on daily chart. Set up in the current price suggests that it is likely to come out of a compression zone and momentum is likely to kick in above 680 mark. This 680 level also coincides with a falling trendline resistance. A 6-8% follow up move is likely to unfold from CMP.
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