The Indian stock market exhibited a muted start to the trading session on Wednesday, with benchmark indices showing minimal movement as they attempted to find a footing following two straight days of losses. Investors were seen weighing mixed signals from global markets and inconclusive U.S. employment data, which offered little clarity on the future trajectory of interest rates.
Early Session Indices Show Subdued Movement
In the initial hours of trading, the S&P BSE Sensex recorded a marginal gain of 51 points, or 0.06%, reaching 84,731. Conversely, the broader NSE Nifty 50 edged lower by 14 points, or 0.05%, to trade at 25,874. The banking sector faced pressure, with the Nifty Banking index slipping into negative territory. It reversed an early gain of 50 points to post a loss exceeding 120 points, trading nearly 200 points below the day's peak.
Analyst Outlook on Nifty and Bank Nifty
Sagar Doshi, Senior Vice President- Research at Nuvama Professional Clients Group, provided his technical perspective on the market. He noted that the Nifty 50 reclaimed the 26,000 mark in its last weekly close, negating the short-term downside that had emerged earlier. According to his analysis, the index has re-entered a short-term 'buy on dips' zone, with potential targets of 26,250 and 26,450.
Regarding the Bank Nifty, Doshi observed that it continues to trade within a range of 58,750 to 59,500. A decisive break above this range (seen as a probable scenario) could allow the banking index to regain its leadership position against the Nifty. He suggested that a quick short-covering rally above 59,500 could unfold, with support placed below the 59,200 level.
Stock-Specific Recommendations from Nuvama
The research firm also issued buy recommendations on several stocks, citing technical breakouts and favorable chart structures.
Glenmark Pharmaceuticals (BUY): With a last traded price (LCP) of ₹1,966, the stock is seen as having given a fresh breakout from a six-month consolidating trendline. This pattern is also interpreted as a bullish 'pole and flag' breakout on daily and weekly charts. A stop loss (SL) is suggested at ₹1,930, with a target (TGT) of ₹2,140.
Bharat Petroleum Corporation Ltd (BPCL) (BUY): Trading at an LCP of ₹368, BPCL is noted to have completed a retest of a significant bullish 'cup and handle' breakout on weekly charts. A smaller time frame 'pole and flag' pattern is also reportedly ready to break out, potentially leading the stock to new all-time highs. The recommendation carries an SL of ₹358 and a TGT of ₹392.
ZF Commercial Vehicle Control Systems India (BUY): Priced at ₹15,030 (LCP), the stock is said to have gained momentum after an eighteen-month trendline breakout earlier this month. A fresh bullish 'cup and handle' breakout on daily charts has propelled the stock to a fresh 52-week high. The technical setup suggests a potential 8-10% appreciation, with an SL of ₹14,300 and a TGT of ₹16,400.
Disclaimer: The views and recommendations presented are those of individual analysts and broking firms, not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
