Indian equity markets maintained their upward trajectory on Wednesday, closing significantly higher as investors showed strong appetite for energy, financial, and metal stocks. The bullish sentiment was fueled by positive global indicators and declining crude oil prices, creating an optimistic trading environment.
Market Performance Highlights
The Nifty 50 index successfully closed above the 26,200 mark, while the Sensex moved closer to the 85,600 level by the end of the trading session. Market analysts attributed this sustained rally to growing expectations of potential interest rate cuts by the US Federal Reserve, which has improved overall investor confidence globally.
What makes the current market movement particularly noteworthy is the expansion of participation beyond traditional defensive sectors. Cyclical sectors including metals and banking stocks have emerged as significant contributors to the gains, indicating a substantial improvement in risk appetite among investors.
Expert Market Analysis and Outlook
Abhinav Tiwari, Research Analyst at Bonanza, provided insights into the key factors driving market sentiment. "In the short term, the market will carefully monitor global expectations for interest rate cuts, crude oil prices, and inflows from foreign investors," he stated.
Tiwari further explained that if oil prices remain reasonable and the US Fed continues to provide supportive signals, the current upward trend could persist. Financials and specific cyclical sectors are expected to remain in focus, supported by consistent earnings performance and stable macroeconomic conditions.
Technical Analysis and Trade Setup
Rupak De, Senior Technical Analyst at LKP Securities, offered a technical perspective on market movements. He noted that the index experienced selling pressure as the Nifty struggled to maintain levels above 26,000, resulting in a pullback toward 25,850.
"On the hourly chart, the index has entered a bearish phase following two consecutive breakdowns from consolidation," De observed. "There is a noticeable bearish divergence on the daily chart, accompanied by a bearish crossover."
According to De's analysis, market sentiment is likely to remain weak in the near term, with the index potentially dropping towards 25,700. Resistance is currently noted at the upper threshold of 26,000.
Recommended Stocks for Thursday Trading
Market experts have identified eight intraday stocks that show promising potential for Thursday's trading session. The recommendations come from three respected analysts: Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher.
Sumeet Bagadia's Top Picks
Hexaware Technologies Ltd: Bagadia recommends buying at ₹756 with a stop-loss at ₹730 and target price of ₹808. The stock has witnessed a strong rebound from recent lows, forming a double-bottom pattern that indicates potential trend reversal.
L&T Finance Ltd: Recommended buy price is ₹307.6 with stop-loss at ₹297 and target of ₹329. The stock displays a long-term uptrend with recent strong rally and has formed a new all-time high at ₹308.8.
Ganesh Dongre's Stock Selections
Bajaj Finance Ltd: Buy at ₹1,012 with stop-loss at ₹990 and target of ₹1,050. The stock shows a notable bullish reversal pattern in recent short-term trend analysis.
NTPC Ltd: Purchase at ₹326 with stop-loss at ₹320 and target of ₹340. The stock has found major support around ₹320 and shows reversal price action formation.
Tata Steel Ltd: Buy recommendation at ₹170 with stop-loss at ₹165 and target of ₹182. A bullish reversal pattern has emerged in short-term trend analysis.
Shiju Koothupalakkal's Intraday Choices
One 97 Communications Ltd (Paytm): Buy at ₹1,286 with target of ₹1,340 and stop-loss of ₹1,260. The stock has taken support near the important 50EMA zone at ₹1,255.
Mahindra & Mahindra Ltd (M&M): Purchase at ₹3,686 with target of ₹3,840 and stop-loss of ₹3,600. The stock has been consolidating with strong bias maintained.
TVS Motor Company Ltd: Buy at ₹3,538 with target of ₹3,670 and stop-loss of ₹3,480. The stock shows strong bullish candle formation with support maintained near 50EMA at ₹3,445.
Market participants should note that these recommendations represent the views of individual analysts and broking companies. Investors are advised to consult certified experts before making any investment decisions.
