Indian equities will track global cues on Wednesday ahead of key macroeconomic data. Furthermore, stock-specific movements will be massive on the back of Q4 earnings. In the previous session, Sensex and Nifty 50 witnessed a sluggish performance, however, steady buying by foreign investors and strong momentum in auto and IT stocks kept the bears at bay. Besides this, Mankind Pharma stock outperformed on its listing day, while the country’s retail-based REIT IPO Nexus Select Trust also took the market by storm.
The Sensex closed unchanged at 61,761.33 on Tuesday. Similarly, Nifty 50 also closed at 18,265.95 with sluggishness. Markets closed flat as weak global cues weighed on sentiment. In the broader market, small-cap stocks were the worst hit with the indices falling over 100 points on the BSE. However, midcaps and BSE Sensex Next 50 were in the green. In terms of sectoral indices, auto and IT stocks were the top gainers, while consumer durables and banking stocks were the biggest losers.
Besides, foreign institutional investors (FIIs) continued to show resilient appetite for Indian equities for the ninth day in a row on Tuesday, while domestic institutional investors (DIIs) inflows also slowed down for the second day in a row.
FII stood on the flow 1,942.19 crore on May 9, while DII purchases were equal to 404.70 cr.
For Wednesday’s session, Rohan Patil, Technical Analyst, Samco Securities said, “The bullish formation on the daily chart is in its mark and any dip in prices should be utilized as a buying opportunity.”
Stocks like Lupine, Godrej Agrovet, Eveready Industries, Nazara Tech, Birla Corp and Shipping Corporation of India will remain in focus after their fourth quarter report on Wednesday.
Technically, Patil said, “Bullish candles have shown optimism among traders, but for extended bullish momentum the index needs to cross 18,350 level at higher levels. On the lower side, 18,050 and 18,000 are likely for the index.” Will act as a support zone.”
Meanwhile, Ajit Mishra, VP Technical Research, Religare Broking said, “Market is showing resilience amid mixed signals and Nifty has made an even higher base at 18,050 level. Will provide a decisive breakout above 43,500 in the banking index. The trigger needed for fresh momentum would otherwise be a gradual upward move. Thus, we reiterate our Bullish outlook and suggest to focus on stock selection and trade management.”
Here are the top stocks to buy and sell in Wednesday’s trading session:
Anuj Gupta, Vice President – Research at IIFL Securities:
Buy WIPRO with stop loss for a target price of 368 405
Buy Tata Steel with a stop loss of – for a target price of 106 119
Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi:
Buy UFLEX here with a stop loss of 425 for a target price of 415 445
Buy Birlasoft from here with a stop loss of 309 for target value of 302 322
Nifty Spot Index takes support at 18000/18050, while resistance is seen at 18500/18550
Bank Nifty Spot Index will see support at 42500/42600 and resistance at 44000/44000
Sumeet Bagadia, Executive Director, Choice Broking:
Buy Cipla for K stop loss for target price of 925 955-960
buy dabur with stop loss for a target price of 508 528-535
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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