The stock market continues to be in turmoil as the Nifty 50 Index and broader indices show weakness. Here's a complete breakdown of today's market trends, resistance and support levels, global cues, and expert-recommended stock picks.
Market Overview
| Nifty 50: 23,727.65, -0.11% Tuesday: After Monday's rebound,
immediate resistance is placed at 23,900-24,000 and support at 23,500.
| S&P BSE Sensex: 78,472.87, down 0.11%.
| Bank Nifty: 0.16% off, closed at 51,233.00. Now, a move below 51,000 may witness further selling towards the 50,500 level, which coincides with its 200-day moving average.
Sectoral Performance :
| Gainers: The FMCG and Auto sectors recorded marginal gains.
| Losses: Metal, IT, and other indices were under pressure.
| Broader Indices: Showed volatility, ended near the flatline.
Expert Insights :
The near-term trend for Nifty remains weak and at no point
in time, any significant bottom reversals were indicated, said Nagaraj Shetti,
Senior Technical Research Analyst at HDFC Securities.
Q3 corporate results and Union Budget will set the trend of
the market. A strong dollar, high bond yield and uncertainty over rate cuts
have prevailed caution, said Vinod Nair, Head of Research at Geojit Financial
Services.
Global Market Cues
With the exception of domestic, most markets were closed for trading on Wednesday. The market henceforth will be guided by some external factors like the strength of the U.S. dollar and bond market trend.
| Trade Setup for Thursday
> Nifty 50
Resistance: 23,900-24,000
Support: 23,500
> Bank Nifty
Bearish bias with immediate support at 51,000.
A break below 51,000 may see a fall through to 50,500.
Top 5 Stocks of the Day to Buy
1. United Breweries Ltd
- Entry Price: ₹2052.75
- Target Price: ₹2196
- Stop Loss: ₹1980
Rationale: Excellent bullish momentum, further supported by
a breakout above key resistance at ₹2050 on a bullish engulfing candlestick
pattern on the daily chart.
2. KFin Technologies Ltd
- Entry Price: ₹1476.95
- Target Price: ₹1565
- Stop Loss: ₹1420
Reasoning: There is an uptrend at the current high level and
the trading volumes are good. Higher highs and higher lows confirm the
continuation of the bullish sentiment.
3. Tata Chemicals Ltd
- Entry Price: ₹1070
- Target Price: ₹1135
- Stop Loss: ₹1030
Reason: Very good support at ₹1030, coupled with a clear
trend reversal, suggests more upside momentum.
4. SBI Cards and Payment Services Ltd
- Entry Price: ₹698
- Target Price: ₹740
- Stop Loss: ₹680
Reason: It forms a bullish reversal pattern and has critical
support at ₹680, which provides an excellent buying opportunity with gain
prospects.
5. Kotak Mahindra Bank Ltd
- Entry Price: ₹1750
- Target Price: ₹1790
- Stop Loss: ₹1730
Reason: Breakout seen at ₹1750; RSI given a buy signal as
the same has crossed the earlier high. Traders are advised to buy on a decline.
Conclusion
While global and local uncertainties remain the main caution for the stock market, there are select stocks showing strong technical patterns that would offer some luring prospects for the traders and investors.
Disclaimer: The above recommendations are based on technical
analysis by experts and broking companies. Please consult a certified financial
advisor before making investment decisions.
