The Indian equity market is poised for a mildly positive opening on Wednesday, supported by steady global cues and robust domestic fundamentals. However, trading is expected to remain cautious and range-bound due to reduced holiday season volumes, which should help contain volatility.
Market Outlook: Consolidation Phase Ahead
With many global markets operating with thin liquidity ahead of Christmas, participation is likely to be selective. This environment favours market consolidation rather than aggressive directional moves. Risk sentiment remains stable, indicated by subdued volatility levels, suggesting the market is in a pause phase.
Analysing the trend for the Nifty 50 index, Ponmudi R, CEO of Enrich Money, noted that the index continues to trade within a healthy rising channel, staying comfortably above its key moving averages. The current price action indicates a consolidation phase just below a resistance zone, typical after a strong upward move.
Immediate support for Nifty is placed at 26,100, backed by significant put open interest. The 26,000–25,950 zone, which aligns with the 20-day EMA and a key psychological level, forms a strong demand base. As long as Nifty closes above 26,000, the near-term outlook stays mildly bullish, favouring a buy-on-dips strategy. On the upside, the 26,200–26,300 band remains a supply zone.
Regarding the Bank Nifty, the index is expected to trade in a range-bound to mildly cautious manner, showing slower momentum compared to the broader market. It holds above short-term supports, keeping its structure intact, but upside is capped by persistent call writing in the 59,400–59,500 range. 59,400–59,500 is a critical intraday pivot band, with strong put support near 59,000–59,100. A close below 59,200 could lead to a test of 59,000, while a sustained close above 59,500 is needed to boost bullish momentum. Sectorally, PSU banks are providing stability while private lenders consolidate.
Global Cues and Commodity Surge
Asian shares advanced on Wednesday, rounding off a year of strong gains driven partly by artificial intelligence. Meanwhile, commodities like gold and silver extended their record-breaking rally.
On Wall Street, the S&P 500 hit a closing record as a Santa Claus rally materialised. Positive U.S. economic data boosted risk sentiment. Japan's Nikkei rose 0.4%, while South Korea's market outperformed with an impressive 72% annual surge.
In commodities, spot gold climbed 0.8% to a new all-time high of $4,524 per ounce, marking a 72% gain for the year. Silver jumped 1.2% to a record $72.27 per ounce, set for an annual rise of nearly 150%, its best year ever.
Expert Stock Picks for Today's Session
Market experts have recommended eight stocks for intraday trading on Wednesday. Here are their insights and technical calls:
HCL Technologies: Sumeet Bagadia of Choice Broking recommends buying at ₹1679.90, with a target of ₹1780 and a stop loss at ₹1625. The stock shows a bullish reversal and trades above key moving averages.
UPL: Bagadia suggests buying at ₹781, targeting ₹850, with a stop loss at ₹745. The stock displays renewed strength above its breakout zone and key EMAs.
Coforge: Ganesh Dongre from Anand Rathi advises buying at ₹1775 for a target of ₹1825, with a stop loss at ₹1730, citing a bullish reversal pattern.
Axis Bank: Dongre recommends buying at ₹1225, targeting ₹1275, with a stop loss at ₹1190, noting a reversal pattern at current levels.
Prestige Estates: This stock is a buy at ₹1605 for a target of ₹1655, with a stop loss at ₹1580, as per Dongre's analysis.
JSW Infra: Shiju Kuthupalakkal of Prabhudas Lilladher suggests buying at ₹286.50, targeting ₹305, with a stop loss at ₹280, following a positive pullback.
Sarda Energy & Minerals: Kuthupalakkal recommends buying at ₹530 for a target of ₹565, with a stop loss at ₹518, as the stock gains strength above key averages.
Syrma SGS Technology: A buy call at ₹733.50 for a target of ₹780, with a stop loss at ₹716, is given by Kuthupalakkal, anticipating a trend reversal.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
