Stock Market News: The domestic benchmark indices, the Sensex and Nifty 50, closed Tuesday’s trading marginally higher after hitting fresh highs during the day. However, they remained largely muted in advance of the crucial US Federal Reserve monetary policy meeting.
At the end Tuesday’s session, the Sensex was up 90.88 points, or 0.11%, at 83,079.66 points. In the meantime, the Nifty 50 gained 34.80 points, or 0.14 percent, to close at 25,418.55 points. Consumer durables and realty were among the sectors indexes’ notable movers.
The expectation of a US Federal Reserve rate-cut cycle, according to Vinod Nair, Head of Research at Geojit Financial Services, has somewhat positive momentum in the Indian market. The market is still paying attention to the Fed’s remarks about the state of the economy and the likelihood of more rate cuts, even if a 25 basis point decrease is already fully priced in. To strengthen the domestic market even further were strong institutional flows.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50 has rallied close to 500 points in the past one week of trade completing its short term targets of 25,300 / 25,350 odd. The index continues to consolidate now at record high levels before commencing its next leg upside. These level of 25,300 is now likely to act as short term support zone and dip below the same are set to get bought into for further upside of 25,550 / 25,750. Stoploss for this price action is seen at 25,200 on a closing basis.
Bank Nifty
Bank Nifty has ended at a fresh 8 week high in trade as private banks gather momentum to lift the index back to fresh all time highs. Bank Nifty has given a sloping trendline breakout which was in existence for the past 2 months. Short term targets of 51750 / 52000 have met in the past week while 51500 is now likely to act immediate support for targets of new high on the index.
Top Stock Recommendations by Sagar Doshi
On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:
Bandhan Bank Ltd (BUY): LCP : ₹207; Stop Loss : ₹198; Target Price : ₹235
The private bank space is showing sign of momentum with Bandhan bank showing strong signs of accumulation. Stock has witnessed strong volumes in last two months with price consolidating in narrow range. A breakout above 211 level can lead to strong momentum towards 230-240 zone.
National Aluminium Company Ltd (NALCO) (BUY): LCP : ₹186; Stop Loss : ₹178; Target Price : ₹215
The stock has managed to cross above its swing high with strong volumes. The metal stocks are showing some sign of life with fed rate cut being strong catalyst. With strong volumes in last three trading sessions, the stock is expected to gain further momentum.
Kotak Mahindra Bank Ltd (BUY): LCP : ₹1,846; Stop Loss : ₹1,785; Target Price : ₹2,050
The stock is forming an inverse head & shoulder pattern on weekly timeframe which is a sign of strong bullish positioning. Also, it is trading near its 3 months high and expected to gain strong momentum once it crosses its swing high of 1,867.
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 decision.
