The Indian stock market extended its upward trajectory for the third consecutive session on Wednesday. The Nifty 50 index advanced by 147 points, closing at 23,868, while the BSE Sensex surged by 620 points, finishing at 78,674. The Bank Nifty index also saw gains, ending 264 points higher at 52,870. In the broader market, the small-cap index rose by 0.15%, while the mid-cap index declined by 0.29%.
Trade Setup for Thursday
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted the recent breakout from a range-bound movement in mid-June. “Nifty is now experiencing a decisive upside breakout, with potential resistance around the 24,000-24,100 levels. Immediate support is seen at 23,650 levels, and we might expect some consolidation or minor weakness at the highs,” Shetti commented.
Om Mehra, Technical Analyst at SAMCO Securities, highlighted the Bank Nifty’s new high of 52,988.30, closing at 52,870.50. “The index’s closing above a rising trendline connecting previous tops indicates ongoing bullish momentum. Consolidation might occur within the 52,200-53,000 range, but a breach of the 53,040 level could push the index towards 53,280-53,350,” Mehra explained.
Market Sentiment and India VIX
Siddhartha Khemka, Senior Group Vice President and Head of Research at Motilal Oswal, cited improved sentiment for banking and financials following the release of lower current account deficit numbers. “Optimism around the Union Budget, increasing FII inflows, and robust domestic economic data are driving the market’s positive movement. We anticipate the uptrend to persist,” Khemka stated.
Sumeet Bagadia, Executive Director at Choice Broking, observed the continuous retracement of the India VIX in June. “The volatility index, which neared 32 during the Lok Sabha elections, is expected to remain between 13 and 14.50 ahead of the Union Budget 2024. Post-budget, we can expect the India VIX to normalize around 12,” Bagadia predicted.
Buy or Sell Stock Ideas by Experts
Stock market experts Sumeet Bagadia from Choice Broking and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, provided their top stock picks for today:
Sumeet Bagadia’s Picks
- VA Tech Wabag
- Buy at ₹1323.60
- Target: ₹1400
- Stop loss: ₹1275
- Analysis: The daily chart shows a favorable trend with a higher high and higher low pattern, indicating a potential follow-through in the upward movement.
- V-Mart Retail
- Buy at ₹2940
- Target: ₹3100
- Stop loss: ₹2860
- Analysis: A robust breakout from the resistance zone of 2700-2850 with increased trading volume supports a bullish outlook.
Ganesh Dongre’s Picks
- IGL
- Buy at ₹475
- Target: ₹510
- Stop loss: ₹460
- Analysis: Significant support at ₹460, with a reversal formation at ₹475 suggesting a continued rally towards ₹510.
- HCL Technologies
- Buy at ₹1445
- Target: ₹1520
- Stop loss: ₹1410
- Analysis: A bullish reversal pattern indicates a possible rise to ₹1520, with support at ₹1410.
- M&M
- Buy at ₹2857
- Target: ₹2930
- Stop loss: ₹2810
- Analysis: Strong support at ₹2810, with a reversal at ₹2857 likely to drive the stock towards ₹2930.
These insights and recommendations aim to provide a comprehensive trade setup for the Nifty 50 and related indices, along with actionable stock ideas for investors and traders.