The Indian stock market is poised for a mildly positive but cautious opening on Wednesday, drawing support from steady global trends and robust domestic fundamentals. With holiday-thinned volumes expected due to the Christmas season, market participation is likely to be selective, promoting consolidation over aggressive directional moves.
Market Outlook: A Phase of Consolidation
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, the overall market bias remains rangebound. The Nifty 50 index is currently trading within a broad band of 25,800 to 26,200. Parekh noted that the index, after three strong sessions, paused near the 26,200 zone, closing flat but with an intact optimistic bias.
She highlighted that the index has crucial support near the 50-Day Exponential Moving Average (DEMA) at the 25,800 level. On the upside, a decisive break above the immediate hurdle at 26,200 could propel the index towards the 26,450 level. For the session, immediate support is placed at 26,050, while resistance is seen at 26,300.
Bank Nifty Awaits a Decisive Break
The Bank Nifty index witnessed a sluggish session, ending flat near the 59,300 mark. Parekh stated that the index is in a consolidation phase with strong support maintained near the 58,700 zone. For a fresh upward move to gain conviction, the index needs to decisively breach the 59,800 level. Such a breakout could trigger moves towards targets of 61,300 and 62,700. The expected daily range for the Bank Nifty is between 59,000 and 59,800.
Vaishali Parekh's Intraday Stock Picks for Wednesday
For today's trading session, Vaishali Parekh recommended three stocks for intraday trading:
- Nykaa: Buy at ₹256, target ₹265, stop loss ₹248.
- JBM Auto: Buy at ₹250, target ₹270, stop loss ₹240.
- Balmer Lawrie: Buy at ₹180, target ₹190, stop loss ₹176.
Risk sentiment in the market remains stable, with subdued volatility indicating a pause rather than a distribution phase. Investors are advised to monitor the mentioned key levels closely as low holiday liquidity could amplify moves.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are advised to consult certified experts before making any investment decisions.
