Indian stock markets concluded Tuesday's trading session in negative territory, halting their recent rally after scaling fresh record peaks earlier in the day. The benchmark indices succumbed to profit booking, influenced by a weakening rupee and persistent selling from foreign institutional investors (FIIs).
Market Snapshot and Key Drivers
The S&P BSE Sensex plummeted by 504 points to settle at 85,138. Meanwhile, the NSE Nifty 50 index dropped 144 points, closing at 26,032. The domestic markets witnessed sustained selling pressure as participants turned cautious ahead of the Reserve Bank of India's (RBI) monetary policy decision later this week.
Abhinav Tiwari, a Research Analyst at Bonanza Portfolio, highlighted that continuous foreign fund outflows, coupled with a lack of progress on major trade pacts, are exerting pressure on the Indian currency. Banking and financial services stocks were among the major laggards, as the sector anticipates a possible rate cut in the upcoming RBI policy review.
"Market participants are likely to remain in a wait-and-watch mode, balancing the optimism from robust GDP growth figures against the concerning decline in industrial output," Tiwari added regarding the near-term outlook.
Technical Outlook and Trade Setup
Rupak De, Senior Technical Analyst at LKP Securities, observed that the Nifty 50 endured another day of lackluster movement dominated by a negative bias. On the hourly charts, the index continues to trade below the 21-period Exponential Moving Average (21EMA). A minor negative divergence spotted on the daily timeframe has further dampened the momentum.
"Immediate support for the Nifty lies at a rising trendline on the hourly chart. A decisive break below this trendline could trigger a fall towards the 25,900 level," De explained. He identified 26,150 as a crucial resistance point; a sustained move above this could revive bullish sentiment. In summary, the analyst expects a bearish to sideways trend to persist in the near term.
Expert Stock Recommendations for Wednesday
Despite the broader market weakness, several analysts have identified potential trading opportunities. Market experts, including Sumeet Bagadia of Choice Broking, Ganesh Dongre from Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher, have recommended eight stocks for intraday trading on Wednesday.
Sumeet Bagadia's Picks
Samvardhana Motherson International Ltd: Bagadia suggests buying the stock at ₹119.26, setting a stop loss at ₹115, and aiming for a target price of ₹128. He notes the stock broke out from a consolidation phase to hit a 52-week high, signaling a potential long-term uptrend with strong volume support.
Vedanta Ltd: He recommends a buy at ₹538 with a stop loss of ₹519 for a target of ₹576. The stock is in a strong upward trajectory and recently registered a fresh all-time high, indicating sustained buying interest.
Ganesh Dongre's Selections
IndusInd Bank Ltd: Dongre advises buying at ₹853. Keep a stop loss at ₹840 and target ₹875. A bullish reversal pattern in the short-term trend suggests a potential bounce from the key support of ₹840.
Adani Enterprises Ltd: Consider buying at ₹2,240 with a stop loss at ₹2,180 for a target of ₹2,340. The stock has shown a reversal pattern after finding strong support around ₹2,180.
Bank of India: A buy recommendation at ₹146 with a stop loss at ₹140 for a target of ₹152. A bullish reversal pattern indicates a possible retracement towards the higher target.
Shiju Koothupalakkal's Choices
Belrise Industries Ltd: Buy at ₹169.85, target ₹180, stop loss ₹165. The stock shows a series of higher bottoms and is on the verge of a breakout with improved volume activity.
NTPC Ltd: Buy at ₹328.60, target ₹348, stop loss ₹322. The stock has pulled back from a strong base near ₹322, with indicators showing signs of revival.
VA Tech Wabag Ltd: Buy at ₹1,385, target ₹1,445, stop loss ₹1,360. After a period of consolidation, the stock has held support near ₹1,340 and formed a positive candle with decent volumes.
Disclaimer: The views and recommendations above are from individual analysts or brokerage firms. Readers are advised to consult certified investment experts before making any financial decisions.
