The benchmark Nifty-50 index made a solid recovery on Tuesday, closing with gains of 0.68% at 25,239.10. This positive movement was driven by growing expectations of a potential trade deal between India and the United States, alongside a 25-basis points cut in the US Federal Reserve rates. The Bank Nifty also registered an increase, finishing at 55,147.60, up 0.47%. Various sectors contributed to this upward movement, including real estate, information technology, auto, metals, oil & gas, and consumer durables, though the fast-moving consumer goods (FMCG) sector lagged slightly behind. In the broader market, mid-cap and small-cap indices recorded gains ranging from 0.54% to 0.95%.
Looking ahead to Wednesday’s trade setup, analysts suggest that as long as the Nifty sustains above the 25,100 mark, bullish sentiment is likely to persist, potentially driving the index up to 25,400 and further towards 25,500. Conversely, if the index falls below this key level, market sentiment could shift negatively, according to Shrikant Chouhan, Head of Equity Research at Kotak Securities. For the Bank Nifty, immediate support is identified at the 54,700 level as per Bajaj Broking.
Market analysts believe that the stock market will continue its gradual upward path while closely monitoring trade-related developments and the decision regarding the US Fed rate cut, which will play a crucial role in shaping investor sentiment. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., highlighted that these factors are pivotal for the near-term market outlook.
In terms of intraday trading recommendations, experts have identified several stocks to consider. Sumeet Bagadia from Choice Broking recommends buying India Nippon Electricals Ltd. at ₹979, with a target price of ₹1,050 and a stop loss at ₹945. Bagadia also suggests Pondy Oxides & Chemicals Ltd. at around ₹1,301, setting a target of ₹1,400 with a stop loss at ₹1,250, due to its strong bullish sentiment and breakout structure.
Ganesh Dongre from Anand Rathi recommends Rallis India Ltd. at ₹339, targeting ₹365 with a stop loss at ₹330, citing that historical support levels indicate potential for upward movement. He also recommends Hindustan Zinc Ltd. at ₹463, with a target of ₹485 and a stop loss at ₹450. Further, he suggests Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) at ₹728, targeting ₹750 while placing a stop loss at ₹720.
From Prabhudas Lilladher, Shiju Koothupalakkal suggests Hindustan Oil Exploration Company Ltd. at ₹172.75, aiming for ₹182 and a stop loss at ₹169. He also recommends Tilaknagar Industries Ltd. at approximately ₹479.80, targeting ₹505 with a stop loss at ₹470, and Aeroflex Industries Ltd. at ₹187.60, aiming for ₹200 with a stop loss at ₹184. Each of these recommendations is framed within a technical analysis indicating potential gains based on market trends and patterns.
Investors are advised to conduct thorough research or consult certified experts before making any financial decisions, as the opinions expressed by the analysts are based on individual perspectives.
