Market Stages Spectacular Reversal
In a dramatic turnaround, the Indian stock market delivered an impressive performance on Wednesday, defying initial negative cues. Despite Gift Nifty signaling a positive opening, the key benchmark indices actually began the trading session in negative territory. However, this early weakness proved to be short-lived as buying momentum emerged right from the opening tick, creating what technical analysts call an 'Open Low' setup.
Record-Breaking Gains Across Indices
As the trading session progressed, prices climbed steadily throughout the day, culminating in substantial gains across all major indices. The Nifty 50 index closed with impressive gains of 320 points, decisively breaking through the psychological 26,200 barrier. This powerful move not only erased the declines of the previous three sessions but also encompassed the entire corrective phase, marking the highest closing level of the year and establishing a firm foundation for the December series.
The BSE Sensex witnessed an even more spectacular surge, jumping over 1,000 points to settle at 85,609. Meanwhile, the banking sector showed exceptional strength with the Bank Nifty index skyrocketing 707 points to close at 59,528. With these remarkable gains, the all-time high now appears within easy reach, looking more like a near-term formality than a distant target.
Expert Analysis and Future Projections
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, expressed strong optimism about the market sentiment following this robust performance. She highlighted that the Nifty 50 index witnessed a strong and convincing turnaround from the 25,850 zone, forming a huge bullish engulfing candle that indicates strong optimistic momentum.
According to Parekh, the index now has crucial support near the 25,750-25,800 band, which needs to be maintained for the upward trajectory to continue. On the upside, with the underlying tone turning strongly positive, she anticipates fresh higher targets of 26,500 and 27,200 levels in the coming days.
Regarding the Bank Nifty's outlook, Parekh noted that the index displayed a strong bullish candle formation on the daily chart, breaking above the previous peak level of 59,400 zone and entering new territory. This breakout is expected to trigger a fresh round of upward movement in the coming sessions. The banking index has near-term support positioned at the 58,600 zone, while potential upside targets include 61,400 and 63,500 levels.
Immediate Trading Levels and Stock Recommendations
Parekh identified immediate support for the Nifty 50 index at 26,100, with resistance positioned at 26,400. For the Bank Nifty index, she expects a daily trading range between 59,000 to 60,200.
For traders seeking immediate opportunities, Vaishali Parekh recommended three stocks for intraday trading:
- Bharat Electronics Ltd (BEL): Buy at ₹413, Target ₹430, Stop Loss ₹408
- Kalyan Jewellers India: Buy at ₹496, Target ₹510, Stop Loss ₹490
- Morepen Laboratories: Buy at ₹44, Target ₹48, Stop Loss ₹42
The dramatic recovery has significantly improved market sentiment, with technical indicators suggesting continued strength in the near term. However, investors are advised to maintain caution and consult certified experts before making any investment decisions.
