On Wednesday, the domestic benchmark indices, Nifty 50 and Sensex, hit fresh record highs, with Nifty 50 reaching 23,664 and Sensex peaking at 77,851.63. Despite these highs, Nifty 50 closed in the red due to profit-booking at higher levels. Broader markets also lagged behind, with the Nifty Midcap 50 down 0.95% and the Nifty Smallcap Index declining 0.46%.
However, a significant positive takeaway was observed in the Bank Nifty, which outperformed the Nifty 50 and reached a new all-time high of 51,957. According to Vinod Nair, Head of Research at Geojit Financial Services, the domestic market started positively, supported by an early and accurate monsoon projection. Nonetheless, the market’s pace has slowed due to the current sluggish monsoon. The banking sector is witnessing a rebound in Foreign Institutional Investor (FII) inflows as the US 10-year yield continues to fall.
Trade Setup for Thursday
Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, notes that despite Wednesday’s profit-booking, the market sentiment is driven by increasing bets on a soft landing in the US. Tapse highlights Nifty 50‘s immediate target at the psychological 23,750 mark, with aggressive targets set at 24,000. The critical support level for Nifty 50 is at 23,350, while its 200-day moving average (DMA) is positioned at 21,287.
Sumeet Bagadia’s Recommendations
State Bank of India (SBI)
- Buy Price: ₹852.60
- Stop Loss: ₹828
- Target Price: ₹905
SBI is currently trading at a pivotal point. With strong support at ₹828, near its 20-day Exponential Moving Average (EMA), and a minor resistance at ₹860, a breakout could lead to a target of ₹905. The Relative Strength Index (RSI) is at 57.18, indicating strength.
Infosys
- Buy Price: ₹1,511.35
- Stop Loss: ₹1,475
- Target Price: ₹1,590
Infosys is showing bullish momentum, trading above key EMAs and recently breaking above ₹1,505. The RSI at 60.22 suggests increased buying momentum, with potential to reach ₹1,590.
Ganesh Dongre’s Recommendations
Kotak Mahindra Bank
- Buy Price: ₹1,744
- Stop Loss: ₹1,720
- Target Price: ₹1,790
Kotak Mahindra Bank has found substantial support at ₹1,720 and is showing signs of a price reversal at ₹1,744. The next resistance is at ₹1,790, providing a good buying opportunity.
Adani Ports and Special Economic Zone Ltd
- Buy Price: ₹1,450
- Stop Loss: ₹1,420
- Target Price: ₹1,490
Adani Ports has shown a bullish reversal pattern with strong support at ₹1,420. The stock is expected to rebound to ₹1,490, presenting a favorable long position.
Carborundum Universal Ltd
- Buy Price: ₹1,825
- Stop Loss: ₹1,800
- Target Price: ₹1,855
Carborundum Universal has consistent support around ₹1,800 and is showing a reversal near ₹1,825. The stock could rally towards ₹1,855, making it a viable buying option.