Stock Market News: The domestic benchmark indices, the Sensex and the Nifty 50, rose to record highs at the start of Wednesday’s session, tracking positive global equity markets. Furthermore, soft retail sales data in the United States confirmed predictions of an early rate cut by the Federal Reserve, which bolstered the sentiments.
At 9:15 IST, the NSE Nifty 50 rose 0.31% to 23,629.85, while the S&P BSE Sensex rose 0.31% to 77,543.22.
Also Read: Sensex Today Live Updates: Sensex opens at record high of 77,418, Nifty at 23,629; Indus Towers, HUDCO in focus
Higher highs and higher lows are definite signs of a robust bull movement, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. This is now happening in the Nifty, which has established four consecutive record highs. Net institutional activity has improved, with both FIIs and DIIs becoming purchasers.
The decline in the US 10-year bond yield to 4.21% may encourage FIIs to buy more. This is propelling FII-heavy equities such as HDFC Bank and ICICI Bank, which have more opportunity to rise because their valuations are reasonable.
Also Read: Stocks to watch: Indus Towers, HUDCO, Birla Cables, Vikram Solar, Midhani
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50 is back to lifetime highs as the index remains on track to hit 23,800 / 23,900 on the upside after completing its initial target of 23,500 in Tuesday’s trading session. With no more events scheduled in this truncated week and India VIX dropping close to ~60% from its highs it saw earlier this month, the fear seems to be away from the market for this week. Nifty’s dynamic support can be seen at 22,300 while any dips near 22,400-450 odd mark should be used as an opportunity to buy or add on existing long bets.
Bank Nifty Outlook
Bank Nifty was facing repeated supply near the 50k mark which has now been reclaimed on the first trading day of this week. The index remains on track to hit 50,600 / 51,100 mark on the upside as Bank Nifty is yet to take out its election outcome day’s high, post which fresh short covering could ignite momentum on the index. Private banks are likely to take leadership from here on allowing the Bank Nifty to lift higher wherein any dip towards sub 50,300 is likely to act as an active buying / addition zone for index traders on the long side.
Also Read: Nvidia surpasses Microsoft to become world’s most valuable company
Top Stock Recommendations by Sagar Doshi
On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (BUY): LCP: ₹703.20; Stop Loss: ₹683.00; Target Price: ₹743.00
Stock has given a sloping trendline breakout which was in place from the start of this calendar year. GNFC had already crossed above its 200 DMA last week and the same has been acting as a dynamic support for the set up on this scrip. A higher low formation is also seen in the recent swings on daily formation indicating that this breakout has further legs on the upside. China TDI price chart is also on the verge of breaking out and the same could allow GNFC swing higher as both charts have historically shown active correlation.
Avenue Supermarts Ltd (DMart) (BUY): LCP: ₹5,039.30; Stop Loss: ₹4,840; Target Price: ₹5,390
Stock has broken out from its 10 week long consolidation in today’s session making the scrip to trade at a fresh 2.5 year high. Consumption related stocks have been buzzing for the past couple of days in the frontline as well as midcap space and Dmart stands a beneficiary on the consumption story. Stock prices had already crossed above its 20 DMA as well as 50 DMA earlier this month and had been holding above the same for the past 2 weeks. Further legs on this set up on charts are warranted for scrip.
Also Read: Stock market today: Nifty 50, Sensex settle at record closing highs; ICICI Bank, HDFC Bank top index movers
Coforge Ltd (BUY): LCP: ₹5,273; Stop Loss: ₹5,095; Target Price: ₹5,600
Coforge has also crossed above its 20 DMA and 50 DMA lines in the past 1 month and is slowly moving towards its 200 DMA odd mark which currently reads at 5600 odd levels. A higher low formation is also evidently visible on daily timeframe charts which is warranting further upside on the stock. Lower time frame charts like 60 min and 240 min charts have given a breakout which is likely to advance lead to daily charts as well in this week’s trade. Overall the chart remains open to test 5600 on the upside implying another 5-7% upside from CMP.
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.
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Published: 19 Jun 2024, 10:00 AM IST