Stock market today: Domestic benchmark indices, Sensex and Nifty, opened in the red on Wednesday, pulling back after a strong two-day relief rally, as investors looked for clearer signals on global trade developments.
At around 9:19 am, the BSE Sensex was down by 128 points or 0.17%, trading at 76,606, while the Nifty50 slipped 51 points or 0.22%, to 23,278.
“Despite the massive gap up opening yesterday, momentum was found missing during the day, with the 100 DMA near 23390 appearing to put a lid on upswings. This sets up a pull back move today. However, with VIX having declined considerably, the possibility of renewed upswing and break of the 23390 remain high, if dips are held above 23080-22975. This retains 24000 as an optimistic objective,” said Anand James, Chief Market Strategist, Geojit Investments Limited.
What’s next for Indian stock market?
After five consecutive months of decline, the benchmark indices staged a relief rally, posting a 6.3% gain and signaling a potential short-term pause. Since January, the index has been consolidating within a broad 23,800–22,000 range, reflecting heightened volatility around its primary support zone.
“We adopt a cautiously optimistic stance, anticipating a range-bound to mildly positive trajectory between 24,200 and 22,500. The upward-sloping monthly trendline reinforces the 22,400–22,300 zone as a critical support area, offering a strategic window for accumulation,” brokerage firm Axis Securities said in a report.
The expected trading range for the upcoming period suggests a potential movement between 24,200 and 22,600 for the Nifty index, indicating a relatively wide band of market activity. Similarly, the Sensex is anticipated to fluctuate within the range of 80,200 to 74,300, according to the brokerage firm.
Sensex to Nifty50 – Key technical levels to watch out next month
Sensex closed at 77,415 in the previous month, gaining 5.76%. Meanwhile, the BSE Midcap and BSE Smallcap indices gained 8% and 7%, respectively, indicating that the BSE Smallcap outperformed the Sensex and the BSE Midcap.
Axis Securities, while recommending investors to opt for ‘buying on dips’ strategy, said that the short to medium-term trend appears neutral to negative from current levels, with the possibility that the index will likely consolidate within the 78,800-72,000 levels. Any violation of the 72,600 support zone may cause selling pressure towards the 70,200-68,300 levels. Conversely, an immediate supply zone is observed in the 78,000- 79,200 range.
Meanwhile, Nifty 50 index has gained around 6% to close at 23,519 in March 2024. However, Nifty is undergoing a short—to medium-term downtrend marked by lower tops and lower bottoms within 24,200-22,000 levels, reflecting a negative trend.
“The short—to medium-term trend appears neutral to negative from current levels, with the possibility that the index may likely correct towards the 21,500-21,300 levels. Any 21,300 support zone violation may cause selling pressure towards the 21,000-20,600 levels. Conversely, an immediate supply zone is observed in the 23,000-23,800 range,” the brokerage firm added.
Stocks to buy
PNB Housing Finance: Buy at ₹955-935 | Target Price: ₹1145-1240 | Stop Loss: ₹850
KPR Mill: Buy at ₹960-940 | Target Price: ₹1142-1233 | Stop Loss: ₹859
Grasim Industries: Buy at ₹2620-2568 | Target Price: ₹2888-3022 | Stop Loss: ₹2460.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.