Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced a wave of buying interest in the middle of the trading session on Wednesday after enduring 19 consecutive sessions of weak performance.
As of 14:12 IST, Sensex had risen by 707.20 points to reach 73,697.13, while Nifty 50 was up 246.15 points, trading at 22,328.80. Market analysts suggest that this surge might be a relief rally, as the Indian market shows signs of recovery following 19 straight sessions of losses. During this timeframe, there was a notable accumulation of short positions, especially by Foreign Institutional Investors (FIIs), who may now be unwinding some of their positions after an extended decline, according to the analysts.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggested that investors should adopt a wait-and-see approach as events progress. It is advisable to gradually accumulate fairly valued growth stocks, especially those targeting domestic consumption such as financials and telecom, as well as certain auto segments that export to markets outside the US for long-term investment.
Market Outlook by Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities
Nifty 50 has been taking support in the range of 21,800 – 22,000 levels which indicates that the probability of holding the election day lows on a closing basis is quite high. The options activity has also increased as there has been aggressive put writing from 21,800 to 22,000 strikes indicating that the bulls are not expecting the Index to fall below this support range for this weekly expiry. The call writing is mainly seen at 22,500 strike for this weekly series, hence that could be the upper end of the range for this weekly expiry is 21,800 to 22,500 with a positive bias.
The IVs has also cooled off and despite the fall in the markets domestically as well as globally, the IVs have not gone up sharply, indicating that the bulls now have an upper hand and the Index can inch higher from hereon. The immediate target on the upside is 22500 and beyond that 22,800 levels which was the previous support in the market.
Stocks To Buy in the near-term – Jay Thakkar
Jay Thakkar of ICICI Securities recommends buying GAIL Futures, NTPC Futures, and PNB Futures.
Buy GAIL Futures at CMP: ₹159.50 for the targets of ₹166 and ₹170 with a stop loss of ₹154.50
GAIL has formed a “morning star reversal candlestick pattern”. The fall in the stock price was mainly on account of short built up in the stock and now it has shown an early sign of short covering, hence a bounce back cant be ruled out. The stock has witnessed good put additions at the lower levels and on the upside 160 strike has the highest call OI and once that gets taken off it will further witness the short covering.
Buy NTPC Futures at CMP: ₹326 for the targets of ₹338 and ₹345 with a stop loss of ₹316
NTPC has shown a positive divergence in the recent fall as it outperformed the Index wherein Nifty 50 made a new low and NTPC didn’t thus showing strength. The stock has witnessed huge short covering but the prices didn’t reverse from down to up with that momentum, so now with the markets reversing in the short term, the stock is likely to gain the momentum on the way up.
Buy PNB Futures at ₹90 for the targets of ₹95 and ₹98 with a stop loss of ₹87
PNB is likely to bounce back from the current levels as the stock has witnessed short covering in past couple of trading sessions and the stock price has taken a pause in its downward momentum. The PSU Bank Index has also seen reversal from an oversold territory indicating that the short covering cant be ruled out. The stock has also witnessed aggressive put writing and there is a minor hurdle at 90 as it has maximum call OI , so above 90 levels there will be further upward momentum due to short covering.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 04/03/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
