Stock Market News: At the start of trading on Wednesday, auto stocks dragged down the Nifty 50 and Sensex, as investors awaited crucial U.S. inflation data that could impact the potential size of an upcoming US interest rate cut.
The Nifty 50 index remained flat at 25,050.60 as of 9:50 IST, and the Sensex was level at 81,958.29.
The dramatic decrease in the price of crude oil and the softening of base metal prices are two notable trends now observed in the global commodities markets, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The stock market is affected by this. The steep decline in Brent crude to below $70 is indicative of waning demand throughout the world, which in turn points to dimming expectations for global economic development. As a result, rate cuts by the world’s top central banks are now certain. This month marks the beginning of the Fed’s cycle of rate cuts. We may anticipate two rate reductions from the MPC in India in FY25.
Nifty 50 Outlook by Aakash K Hindocha, DVP – WM Research, Nuvama Professional Clients Group
Nifty 50 has bounced back above 25,000 on a closing basis after a brief 600 pt correction last week. Friday’s high of 25,170 is likely to act as short term resistance or supply zone for this leg which once crossed could allow the index to gain back its momentum on the upside. Dips below 25,000 are likely to get bought into for targets of 25,300/25,350 again with support seen at 24,850.
Bank Nifty
Bank Nifty had broken below its 3 month trendline in last week’s trade which has been retested on the upside in yesterday’s trading session at 50950 mark. This resistance is likely to now act as support on the upside for targets of 51,750 / 52,000 with stop loss seen at 50,900 on a closing basis.
Top Stock Recommendations by Aakash K Hindocha
On top stock recommendations for Wednesday, Aakash K Hindocha has recommended three stocks:
Jubilant FoodWorks Ltd (Buy): LCP : ₹665 ; Stop Loss : ₹638 ; Target Price: ₹770
The stock is trading at its 52 week high and recently given a breakout after taking support at 21 day moving average. On Monthly timeframe as well, stock has come out of its 2 year range and managed to close above its swing resistance of 650 level.
Aegis Logistics Ltd (Buy): LCP : ₹850; Stop Loss : ₹810; Target Price: ₹950
Stock has been a strong outperformer since past few months. The relative strength with respect to index is at strong level. Currently it is consolidating around its key moving average and is expected to breakout. One can buy with stop loss of 810.
Tata Power Company Ltd (Buy): LCP : ₹445; Stop Loss : ₹424; Target Price: ₹520
Stock has made a strong reversal candle yesterday with strong volumes. Also it has given a closed above its 21 day moving average on daily timeframe. Once it moves past 450 level, stock is expected to gain strong momentum.
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 decisions.
