Stock Market News: The domestic benchmark indices, Sensex and the Nifty 50, rose to record highs at the opening on Wednesday due to the ongoing surge of auto manufacturer Maruti Suzuki. However, due to a fall in financial stocks, the benchmarks quickly gave up the gains.
For the second consecutive day, the Nifty 50 and the Sensex opened at record-high levels after rising by around 0.1% apiece. With one more session than the Sensex, the Nifty 50 has now recorded record closing highs 16 times in 27 since the beginning of June. But as of 9:20 IST, the benchmarks had rapidly given back the initial gains and were trading between 0.15% and 0.2% down.
The global rally and the consistent inflow of individual investors into the Indian market are two significant elements that have been contributing to the country's current bull market, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. These two elements are still present. The S&P 500 has returned 17.6% YTD compared to Nifty 50's 12.38% YTD return, indicating that the US market is performing incredibly well. Retail investor inflows into the market are been coming in strong, with SIP inflows reaching ₹21262 crores in June. Despite the low value comfort at the moment, these encouraging indicators have the potential to give the market stability.
Nifty 50 has not given a close below its previous day’s low in any of the trading session since the 4th of June outcome. It has been 5 weeks since the index has been experiencing a smooth one-way upside rally with the previous day’s low remaining unscathed. Nifty 50 has completed and closed above both of its targets of 24,300 and 24,400. This enables daily charts to open up for further upside in the days to come. Support just below previous target range could allow Nifty 50 to scale up further for 24,580 / 24,840 with support seen sub 24,200 odd mark.
Bank Nifty has been facing supply near the 53,000 zone and hence is underperforming the Nifty 50 for past 1 weeks now. A retest of 52,000 / 51,700 remains open on cards, until then the index is likely to continue its ongoing underperformance to the Nifty 50. Support to the ongoing move on Bank Nifty stands at 51,600. A fresh down-leg could only start after 51,600 is taken down on a closing basis.
On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:
Stock has broken out of the falling trendline which was acting as a strong resistance from past few months. Also, the breakout is backed by strong volumes . The weekly gain of 12% last week was the highest seen since last one year. This marks strong accumulation in this space and expected to have big follow through action in coming weeks.
Sugar sector has shown strong strength in yesterday's trading session. Stock has taken a support at its 21 day Moving average with a spike in daily traded volume. The current setup suggests 8-10% follow through in price likely over next few trading sessions.
Stock has come out of its consolidation range and successfully closed above 705 levels, which was acting as a resistance since past few sessions. We expect 8-10% follow through action in price from CMP.
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