Stock market today: The Indian stock market opened nearly unchanged on Wednesday as investors awaited the results of the Goods and Services Tax (GST) Council meeting, where important decisions regarding GST rates are anticipated.
At the start of trading, the Nifty 50 index was at 24,616.50, reflecting an increase of 36.90 points or 0.15 percent, while the BSE Sensex began at 80,295.99, rising by 138.11 points or 0.17 percent.
Market stakeholders remain optimistic that the council may implement measures to promote economic growth and enhance domestic consumption amidst ongoing external challenges.
Analysts suggest that the decisions made by the GST Council will be crucial in influencing market trends in the coming days.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 clocked a 200 pt gain on the first trading day of this week followed by a flat close on Tuesday. The positive rub off on the back of better than expected GDP numbers is now digested by the market. Given the set up on daily charts, a retest of 24,500 and 24,350 remains open unless Nifty 50’s resistance of 24,800 is not reclaimed on daily closing basis as the index has given a breakdown from its 24,800 support in last week’s trading.
Bank Nifty
Bank Nifty has engulfed all of its previous day’s gain on Tuesday. The index has so far missed its extended target of 53,500 by a whisker. Bank Nifty continues to hover at 3.5 month low as its resistance has been trailed to 54,100. Any closing above 54,100 would allow the index for a breather short covering northwards, meanwhile a test of sub 53,500 remains open.
Stocks To Buy on Wednesday
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – Amara Raja Energy & Mobility Ltd, Bajaj Auto Ltd, and Dabur India Ltd.
Amara Raja Energy & Mobility (BUY): LCP: ₹1,018.50; SL: ₹982; TGT: ₹1,092
Given the sectoral traction on EV and rare earth names, battery stocks have started showing signs to end its ongoing consolidation. ARE&M has now closed at a fresh 3 month high on the back of a sloping trendline breakout already witnessed in last week’s trading. Additional momentum could pick up above 1048 closing on the stock for targets of 10-15% higher from CMP. For now, we are eyeing 1092 as an initial target for this trade set up.
Bajaj Auto (BUY): LCP: ₹9,030.50; SL: ₹8,720; TGT: ₹9,600
Adding to its ongoing bullish triangle breakout, Bajaj Auto has closed at a fresh 7 month high on daily charts. The stock has also crossed its long term 200 DMA average in the fortnight passed by after a gap of 9 months. Daily charts also indicate a higher low formation for the past 3-4 odd months suggesting presence of buyers at lower levels which could allow additional upside from current breakout.
Dabur India (BUY): LCP: ₹544.60; SL: ₹524; TGT: ₹582
Given the momentum in FMCG names, Dabur has joined the list powered by a bullish (inverted) head and shoulder breakout on daily charts. The stock had been sustaining above its 200 DMA for the past 6 weeks now, while analysing the price volume action in Tuesday’s session, qualifies it for another 8-10% follow through rally on the upside.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
