The Indian equity benchmarks concluded Wednesday's volatile session on a negative note, surrendering early gains as profit-booking emerged at higher levels. The Nifty 50 index, after a flat opening, witnessed buying interest that propelled it to an intraday peak of 26,235 in the first hour of trade.
Market Momentum Reverses Post Morning Rally
However, the bullish momentum proved short-lived. A pronounced correction set in after 10:30 AM, dragging the index down by over 100 points from its day's high. The selling pressure intensified, leading the Nifty 50 to finally settle the session at 26,142, marking a net loss of 35 points. Market activity, as measured by cash turnover on the National Stock Exchange (NSE), also saw a dip, declining by 3% compared to Tuesday's session.
Sectoral performance painted a bleak picture, with most indices closing in negative territory. The Oil & Gas, Pharma, and IT sectors were among the hardest hit. Only the Nifty Media, Realty, and Metal indices managed to escape the sell-off, ending in the green. On the stock-specific front, Trent, Shriram Finance, and Apollo Hospitals emerged as the top gainers within the Nifty pack. Conversely, IndiGo, Adani Enterprises, and Dr. Reddy's Laboratories faced significant selling pressure and ended as the major laggards.
Broader Market Sentiment and Expert Outlook
The broader market presented a mixed bag. While the Nifty Midcap 100 index declined by 0.60%, the Nifty Small-cap 100 index bucked the overall trend to post a gain of 0.3%. The market breadth turned weak after three positive days, with the advance-decline ratio on the BSE standing at 0.79.
Providing technical insight, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, stated that the market sentiment remains flat to positive. She highlighted that the Nifty 50 is facing a resistance hurdle near the 26,230 zone. "The index, indicating a flat pattern on the daily chart, would continue to have the crucial support near the 50-EMA level at the 25,800 zone," Parekh noted. She added that a decisive close above 26,250 is necessary to trigger the next upward move.
On the Bank Nifty, Parekh mentioned the index continues to trade in a range, facing stiff resistance near 59,500. She identified strong support near 58,700 and stated that a breach above 59,800 is needed for a fresh uptrend. For the day, she pegs immediate support for Nifty at 26,000 and resistance at 26,300. The Bank Nifty's daily range is expected between 58,800 and 59,600.
Vaishali Parekh's Intraday Stock Recommendations
For traders looking at opportunities on Thursday, Vaishali Parekh recommended three stocks for intraday trading:
1. Jayaswal Neco Industries: Parekh recommends buying at ₹80.70 with a target of ₹86 and a stop loss set at ₹78.50. She points to the stock gaining momentum from the 50-EMA and an improving RSI as positive signals.
2. Som Distilleries and Breweries: This stock is suggested as a buy at ₹110.35 for a target of ₹117. The recommended stop loss is ₹108. The call is based on a positive reversal signal and the RSI recovering from the oversold zone.
3. Gujarat Ambuja Exports: The recommendation is to buy at ₹125.25 with a target of ₹134 and a stop loss of ₹123. Parekh cites a significant recovery from lows and a higher bottom formation pattern on the daily chart as reasons for the bullish view.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the analyst. Investors are advised to consult certified experts before making any investment decisions.
