Indian stock market: The domestic market closed higher on Wednesday, supported by mostly positive global signals ahead of the Jackson Hole Economic Symposium.
The Nifty 50 opened 18 points lower at 24,680.55, down from its previous close of 24,698.85. However, the index ended the day 71 points higher, or a gain of 0.29 percent, closing at 24,770.20. The Sensex opened 136 points lower at 80,667.25 compared to its previous close of 80,802.86. The index eventually closed 102 points, or 0.13 percent, higher at 80,905.30.
“Nifty after a weak start, ended the session at day’s high with gains of 71 points (+0.3%) at 24770 levels. Broader market outperformed with Midcap100/Smallcap100 up +0.3%/+1.2%. Defensive sectors like FMCG, Consumer durables and Healthcare gained more than 1%, while Banking and Realty on the other hand witnessed selling pressure. Global sentiments are cautious ahead of US Fed meeting minutes release today. Even Powell speech in Jackson Hole Symposium on Friday will be key event to watch out. Both these events are likely to provide some hint as to US Fed next move with regards to interest rate. Hopes are running high for rate cut in September meeting followed by more rate cuts in subsequent meets. The market thus is likely to consolidate this week,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Brokerage firm Motilal Oswal has recommended three stocks - Bajaj Auto, Tata Consultancy Services, and Coromandel International Ltd - to buy this week, with a decent upside move.
Bajaj Auto is in overall uptrend and trading near life time high territory with good buying interest seen in Auto stocks. Technically the stock retested the previous breakout zone on weekly scale and started to form higher lows from past few days. It formed a bullish candle on weekly scale with highest weekly close after eight weeks. On daily scale the stock is perfectly respecting to its 50DEMA and likely to scale new record highs in coming sessions. Momentum indicator RSI is also giving positive crossover which suggests momentum to pick up going ahead. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 9500 levels on closing basis for a new life time high target towards 10750 zones.
TCS formed a strong bullish candle on weekly scale and retested the previous breakout zone with good surge in volumes. On daily scale the stock gave range breakout after eight sessions with highest daily close ever. It has formed a strong bullish candle on daily chart as well and momentum indicator RSI is moving higher which may support the ongoing up move. It is trading above its short term moving averages and good buying interest is visible across IT stocks. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 4280 levels on closing basis for a new life time high target towards 4750 zones.
Coromandel Intl is trading at life time high territory and gave classical Pole & Flag breakout on weekly scale after eight weeks. On daily scale the stock negated the formation of lower highs and gave highest daily close. It is holding well above its short term moving averages and been huge outperformer within midcap space. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1680 levels on closing basis for a new life time high target towards 1900 zones.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
