Market Opens Negative, Then Stages Recovery
The Indian stock market witnessed significant volatility on Wednesday as both major indices began trading in negative territory before staging an impressive recovery. The initial pressure came from continued selling activity by foreign portfolio investors, creating bearish sentiment in early trading hours.
The Nifty 50 index opened at 25,842.95, marking a decline of 41.85 points or 0.16 percent from the previous close. Similarly, the BSE Sensex started the session at 84,503.44, down 83.57 points or 0.10 percent. This negative opening extended the market's losing streak from the first two days of the week, where Nifty had surrendered nearly 200 points.
Global Cues Trigger Turnaround
However, the market narrative changed dramatically shortly after opening as positive signals from global markets provided much-needed support. Both indices quickly shifted into positive territory, registering minor gains by mid-morning trading. This recovery demonstrated the resilience of Indian markets amid ongoing foreign investor concerns.
Market analysts highlighted that foreign portfolio investors maintain substantial short positions, contributing to the ongoing pressure. Sagar Doshi, Senior Vice President-Research at Nuvama Professional Clients Group, provided crucial insights into the market direction, noting that the current dip presents buying opportunities for specific targets.
Expert Analysis and Stock Recommendations
According to Doshi's analysis, Nifty 50 has established support around the 25,800 level, with the current dip likely to attract buying interest for upside targets of 26,250 and 26,450. This comes after the index achieved a strong weekly closing last Friday, despite the recent pullback ahead of monthly expiry.
The banking sector showed relative strength, with Bank Nifty maintaining its outperformance against Nifty 50 during this expiry week. The banking index has established 58,600 as a support base, with upside targets projected at 59,250 and 59,800 levels.
Several specific stocks received buy recommendations from analysts:
Adani Ports and Special Economic Zone Ltd shows a bullish cup and handle breakout on weekly charts after 16 months of consolidation, positioning it for fresh all-time highs despite broader market profit-taking.
Max Financial Services Ltd demonstrates a strong bullish flag formation following an eighteen-week consolidation period, with breakout observed near the 1,650 mark suggesting potential for 8-10% upside from current levels.
Samvardhana Motherson International Ltd exhibits a fresh bullish flat breakout supported by sustained 200 DMA backing over three months, targeting 118-122 levels in the near term.
Investors should note that these recommendations represent individual analyst views and proper due diligence is essential before making investment decisions in the volatile market conditions.
