Stock Market News: Rising for the fourth day in a row, the domestic stock benchmark indices, the Sensex and Nifty 50, saw early gains on Wednesday due to buying in Reliance Industries and ITC as well as a robust trend in US markets.
The 30-share BSE Sensex climbed 138.53 points to 73,243.14 in early trade. The NSE Nifty went up by 60.7 points to 22,278.55.
The continuous FII selling in May has brought the entire FII sale figure to ₹33,540 crores, and the continued DII purchasing has brought the total DII purchase figure to ₹26,500 crores, according to Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Despite being extremely volatile, the market has not moved much as a result of this balance of FII selling and DII purchasing. The Nifty 50 is down just 0.25 percent over the past month.
When the facts surrounding the Indian election results become known, there will be a noticeable shift in the market’s, believes Vijayakumar.
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Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
The Nifty 50 has recovered over 400 odd points since the opening trade of this week. Volatility has risen as India VIX is holding at 18-month highs ahead of the general election outcome in 3 weeks from now. The Nifty 50 has formed a new range, taking polarized support at its 8-month trendline. The new range stands at 21,950–22,300, and the index is likely to trade within this range for the rest of the week. Any close beyond this range could signal another 300–400 pt move on the index in a similar direction.
Bank Nifty Outlook
Bank Nifty has ended its underperformance in the Nifty after nine sessions in Monday’s trade. Since the index has found strong support at its 7-month rising trendline at the 47k mark, a buy-on-dip stance is getting developed on the index. Bank Nifty is likely to extend its ongoing short-coverage move towards 48,250 / 48,650. After dropping over 3,000 pts from its all-time high earlier this month, the index is now on a short covering spree, having bounced 1,000 pts from its recent low. Any 200–300 point dip is likely to be bought into after a trend day visible in the past two sessions. Support is seen at 47,300 spot levels, added Sagar.
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Top Stock Recommendations by Sagar Doshi
On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:
Balkrishna Industries Ltd (BUY): LCP: ₹2,500.00; Stop Loss: ₹2,412.00; Target Price: ₹2,675.00
According to Sagar, the stock is giving a breakout from a cup and handle formation on the daily charts. The stock has shown bullish momentum as prices close at their highest levels since Feb’24. A positive cross-over in the RSI also indicates bullish momentum.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 15
Bosch Ltd (BUY) : LCP: ₹32,098.95; Stop Loss: ₹30,800.00; Target Price: ₹34,200.00.
According to Doshi, a swing breakout has led to prices hitting a fresh all-time high with supporting volumes. This stock has also been a consistent outperformer in the Auto pack.
Coromandel International Ltd (BUY): LCP: ₹1,237.65; Stop Loss: ₹1,190.00; Target Price: ₹1,320.00
Doshi stated that the prices have given a follow-through to the Bullish breakout after a strong base formation. Strong bullish momentum has helped the stock conquer its previous swing top. Current breakout is also complimented by a positive crossover in the momentum indicators.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 15 May 2024, 10:41 AM IST
