The Indian equity benchmarks navigated a day of cautious trade on Tuesday, caught between robust domestic fundamentals and lingering global uncertainties. The session concluded on a largely flat note, with the Nifty 50 index managing to recover most of its intraday losses.
Market Sentiment and Technical Landscape
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, market sentiment has softened slightly following the sell-off witnessed on Monday. The Nifty 50 index closed below the 26,000 mark, inching closer to its crucial 50-day Exponential Moving Average (EMA) support, which is positioned near 25,850.
Parekh emphasized that for bullish conviction to strengthen, the index needs to achieve a decisive close above the 26,250 level. "The Nifty 50 index, after 3 sessions of a losing streak, witnessed a volatile session on the monthly expiry day," she noted, adding that the index respected the low made near 25,880 and the crucial 50-DEMA support held, raising hopes for a revival.
Bank Nifty and Sectoral Movement
The banking index mirrored this tentative stability. The Bank Nifty found support around the 58,700 level during the day before recovering to close near 59,200. Parekh pointed out that with PSU banks gaining momentum, further upside is possible. However, the index urgently requires a decisive breach above 59,800 to trigger a fresh upward move.
The day's recovery was aided by fresh buying at lower levels and short covering in key sectors like banking, auto, and metals following the expiry of monthly derivatives contracts. This activity offset the pressure from cautious global sentiment and currency fluctuations.
Precious Metals See Volatile Swings
In commodity markets, gold and silver prices staged a strong rebound on Tuesday after a sharp fall on Monday. However, the rally proved short-lived. In early morning deals on Wednesday, both metals faced significant selling pressure.
COMEX gold was trading lower at $4,381.45 per ounce, while COMEX silver tumbled over 3% to around $75 per ounce, well below its previous close.
Intraday Stock Recommendations from Vaishali Parekh
For Wednesday's trading session, Vaishali Parekh has recommended three stocks for investors to consider:
1] 360 One: Buy at ₹1180, Target ₹1220, Stop Loss ₹1160. The analyst believes this stock, already in a bullish trend, is preparing for a new round of upward momentum.
2] JBM Auto: Buy at ₹620, Target ₹660, Stop Loss ₹600. The technical chart structure appears positive, and the stock is poised for a decisive breakout above ₹650, which could signal the start of a fresh uptrend.
3] Ola Electric Mobility: Buy at ₹36.30, Target ₹40, Stop Loss ₹35. According to Parekh, the stock is showing signs of a genuine recovery, suggesting the current rebound is not merely a temporary or 'dead-cat bounce'.
Parekh identified immediate support for the Nifty at 25,800 and resistance at 26,200. The Bank Nifty's daily range is expected to be between 58,800 and 59,800.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
