The stock market saw a positive trend at the beginning of Wednesday’s session, with domestic benchmark indices Sensex and Nifty 50 reaching record highs. This surge was in line with the positive global equity markets and was further supported by soft retail sales data from the United States, indicating an early rate cut by the Federal Reserve.
At 9:15 IST, the NSE Nifty 50 rose by 0.31% to 23,629.85, while the S&P BSE Sensex also increased by 0.31% to 77,543.22. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the strong bull movement indicated by higher highs and higher lows in the Nifty. Additionally, there has been an improvement in net institutional activity, with both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) turning into purchasers.
The decrease in the US 10-year bond yield to 4.21% is expected to encourage FIIs to increase their buying activity. This has led to a positive momentum in FII-heavy equities such as HDFC Bank and ICICI Bank, which have the potential for further growth due to their reasonable valuations.
Sagar Doshi, Senior Vice President- Research at Nuvama Professional Clients Group, provided insights into the outlook for Nifty 50 and Bank Nifty. Nifty 50 is predicted to reach 23,800 / 23,900 on the upside after achieving its initial target of 23,500. On the other hand, Bank Nifty is expected to hit 50,600 / 51,100 on the upside, with private banks likely to lead the momentum.
Sagar Doshi also recommended three top stock picks for the day:
1. Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC): The stock has shown a sloping trendline breakout and crossed above its 200-day Moving Average (DMA), indicating further upside potential.
2. Avenue Supermarts Ltd (DMart): DMart has broken out from a 10-week consolidation phase and is trading at a fresh 2.5 year high. The stock is likely to benefit from the ongoing buzz in consumption-related stocks.
3. Coforge Ltd: Coforge has crossed above its 20 DMA and 50 DMA lines, showing a higher low formation on daily timeframe charts. The stock is expected to test 5600 on the upside, implying a 5-7% potential upside from the current market price.
It is important to note that the views and recommendations provided above are those of individual analysts or broking companies and not of the publication. Investors are advised to consult with certified experts before making any investment decisions.
