Stock market news: Indian stocks finished higher on Wednesday, backed by widespread buying in energy, financials, metals, and key large cap shares.
Positive global indicators and a decline in crude oil prices boosted investor confidence, allowing the Nifty 50 to close over 26,200 and driving the Sensex closer to the 85,600 mark by the end of the day.
Experts indicate that optimism surrounding a possible interest rate cut by the US Fed has contributed to the positive sentiment. Market participation has expanded beyond defensive sectors, with cyclical sectors such as metals and banks driving the gains, reflecting a stronger risk appetite.
Market outlook and key drivers
Abhinav Tiwari, a Research Analyst at Bonanza, mentioned that in the short term, the market will carefully monitor global expectations for interest rate cuts, crude oil prices, and inflows from foreign investors. If oil prices remain reasonable and signals from the US Fed continue to be supportive, the upward trend may persist. Financials and certain cyclical sectors are expected to attract attention, supported by consistent earnings and stable macroeconomic conditions.
Trade Setup for Thursday
Rupak De, a Senior Technical Analyst at LKP Securities, mentioned that the index has experienced periods of selling as the Nifty struggled to hold above 26,000, resulting in a pullback toward 25,850. On the hourly chart, the index has entered a bearish phase following two consecutive breakdowns from consolidation.
“Furthermore, there is a noticeable bearish divergence on the daily chart, accompanied by a bearish crossover. Market sentiment is likely to remain weak, with the index expected to potentially drop towards 25,700. Resistance is noted at the upper threshold of 26,000,” said De.
Stocks to buy today
Market experts recommended eight intraday stocks. The experts include Sumeet Bagadia (Choice Broking), Ganesh Dongre (Anand Rathi), and Shiju Koothupalakkal (Prabhudas Lilladher).
Sumeet Bagadia’s stock picks
Hexaware Technologies Ltd: Bagadia recommends buying Hexaware Technologies shares at ₹756, with a stop-loss at ₹730, and a target share price of ₹808.
Sumeet Bagadia said that Hexaware Technologies share price was trading at the levels of 756, the stock has witnessed a strong rebound from recent lows, forming a double-bottom pattern, which indicates a potential trend reversal. This pattern is a classic bullish formation that suggests the stock has found a strong base and is ready for an upward move.
According to Bagadia, the stock is also trading above the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages, further strengthening the bullish sentiment. The successful reclaiming of these levels confirms a shift in momentum, favouring the bulls.
“In conclusion, based on the technical analysis and current market conditions, Hexaware Technologies share price presents a promising buying opportunity for those aiming for an 808 target, provided that appropriate risk management strategies are in place,” said Sumeet Bagadia.
L&T Finance Ltd: Bagadia recommends buying L&T Finance shares at ₹307.6, with a stop-loss at ₹297, and a target share price of ₹329.
Sumeet Bagadia said that L&T Finance share price was trading at 307.6, the stock is currently displaying a Long-term uptrend, evident from its recent strong rally. The price structure is forming a sequence of higher lows and higher highs in recent sessions and has formed a new all-time high at 308.8, indicating strong bullish momentum. This bullish structure is supported by rising volumes, confirming the strength behind the price action.
“In conclusion, based on current technical conditions, LTF offers a strong buying opportunity for short-term traders targeting 329, provided sound risk management measures are maintained,” said Bagadia.
Ganesh Dongre’s stocks to buy today
Bajaj Finance Ltd: Ganesh Dongre recommends buying Bajaj Finance shares at ₹1,012 with a stop-loss at ₹990, with a Bajaj Finance share price target of ₹1,050.
Ganesh Dongre explained that in the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around ₹1,050.
“At present, the stock is maintaining a crucial support level at Rs.990. Given the current market price of ₹1,012, a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹1,050,” said Dongre.
NTPC Ltd: Ganesh Dongre recommends buying NTPC shares at ₹326 with a stop-loss at ₹320, with a NTPC share price target of ₹340.
Ganesh Dongre said that we have seen a major support in this stock around ₹320 So, at the current juncture, the stock has again seen a reversal price action formation at the ₹326 price level, which may continue its rally till its next resistance level of ₹340 so traders can buy and hold this stock with a stop loss of ₹320 for the target price of Rs.340 in the upcoming weeks.
Tata Steel Ltd: Ganesh Dongre recommends buying Tata Steel shares at ₹170 with a stop-loss at ₹165, with a Tata Steel share price target of ₹182.
Ganesh Dongre said that in the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests that there could be a temporary retracement in the stock’s price, possibly to around ₹182. Currently, the stock is holding a crucial support level at ₹165.
“Given this scenario, there is potential for the stock to rebound towards the ₹182 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at ₹165 to manage risk effectively. The target price for this trade is ₹182, reflecting the anticipated upward movement based on the identified technical,” said Ganesh Dongre.
Shiju Koothupalakkal intraday stocks for today
One 97 Communications Ltd (Paytm): Shiju Koothupalakkal recommends buying Paytm shares at ₹1,286 with a target price of ₹1,340 and a stop-loss of ₹1,260.
Shiju Koothupalakkal said that the stock after witnessing a short period of correction has taken support near the important 50EMA zone at 1255 level and near the base of the ascending channel pattern on the daily chart with a significant pullback visible with a positive candle formation to improve the bias and anticipate for further rise in the coming sessions.
“With the chart technically looking attractive, we suggest buying the stock for an upside target of 1,340 keeping the stop loss of 1,260 level,” said Koothupalakkal.
Mahindra & Mahindra Ltd (M&M): Shiju Koothupalakkal recommends buying M&M shares at ₹3,686 with a target price of ₹3,840 and a stop-loss of ₹3,600.
Shiju Koothupalakkal said that the stock has been in consolidation for quite some time with the overall bias maintained strong and currently has indicated improvement in the bias with volume participation on the hourly intraday chart on the rise expecting for further rise in the coming sessions.
“With the chart technically looking good, we suggest buying the stock for an upside target of 3,840 keeping the stop loss of 3,600 level,” said Koothupalakkal.
TVS Motor Company Ltd: Shiju Koothupalakkal recommends buying TVS Motor shares at ₹3,538 with a target price of ₹3,670 and a stop-loss of ₹3,480.
Shiju Koothupalakkal said that the stock has been consolidating with support maintained near the important 50EMA at 3,445 level with currently indicating a strong bullish candle formation to improve the bias and anticipating for further rise in the coming sessions.
“With the chart technically looking good, we suggest buying the stock for an upside target of 3,670 keeping the stop loss of 3,480 level,” said Koothupalakkal.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.