Indian Stock Market Outlook: Positive Momentum Continues
The Indian stock market extended its upward movement for the fifth consecutive session, with the Nifty 50 index gaining 229 points to close at 24,696 on Wednesday. The BSE Sensex surged by 809 points, reaching 81,765, while the Nifty Bank index rose by 341 points to settle at 53,608. The broader market indices showed moderate gains, with the Small-cap index climbing by 0.16% and the Mid-cap index rising by 0.27%. The positive trend was largely driven by strong performances in the IT and financial sectors, buoyed by expectations of potential monetary easing by the Reserve Bank of India (RBI).
Market Analysis and Outlook for Today
Sugandha Sachdeva, Founder of SS WealthStreet, shared her insights on the market’s outlook, noting that the Nifty 50 index broke through key resistance levels, including the 24,550–24,570 range, and surged past the 24,750 mark. This rally was driven by gains in IT stocks, following a trend seen in US tech stocks, alongside a positive performance from the financials sector. Sachdeva pointed out that the market’s overall bias remains bullish, supported by a favorable candlestick pattern indicating buying interest at lower levels. She also highlighted that the relative strength index (RSI) momentum indicator is recovering from oversold conditions, further bolstering the optimistic market sentiment.
Furthermore, foreign institutional investors (FIIs) continued their buying streak, purchasing equities worth ₹8,539.91 crore in the previous session, signaling increased interest in the Indian stock market. From a technical perspective, Sachdeva emphasized that the Nifty 50 is comfortably trading above its 100 and 200-day exponential moving averages (DEMA), reinforcing its upward trajectory. She expects the index to test the 25,000 mark soon. However, after a significant rally of nearly 1,600 points from November lows, some profit booking at higher levels is possible. As volatility is anticipated due to the ongoing RBI policy meeting, key support levels are seen at 24,500 and 24,280.
Intraday Stock Picks Under ₹100
For intraday trading, experts have recommended several stocks under ₹100, with strong potential for short-term gains. Sugandha Sachdeva has highlighted three stocks for today’s session:
- Motherson Sumi Wiring India – Buy at ₹63, with a target price of ₹66.50 and a stop loss at ₹60.80.
- Paramount Communications – Buy at ₹72, targeting ₹75.50 with a stop loss at ₹69.70.
Additionally, Mahesh M Ojha, AVP of Research at Hensex Securities, suggested that traders with a short-term view can also buy shares of Paramount Communications in the ₹72 to ₹74 range, with multiple target levels of ₹78, ₹82, ₹85, and ₹90, maintaining a stop loss at ₹68.
These recommendations align with the positive sentiment in the Indian stock market, as the Nifty 50 index continues its bullish trend and expectations for continued growth persist amid favorable technical indicators.
