Nifty reached new highs on Tuesday for the second consecutive day, driven by buying action in technology and auto stocks. The market’s positive run has been fueled by a combination of factors, including strong corporate earnings, monetary policy cues, and geopolitical tensions.
For the second day in a row, the 50-stock index closed with significant gains, marking a continuation of its upward trend. According to Rupak De, Senior Technical Analyst at LKP Securities, today’s strong move has set the index back above the 21-day Exponential Moving Average (EMA) on the daily timeframe and has seen the Relative Strength Index (RSI) verge on entering a bullish crossover.
“Besides, the 21-day EMA and 50-day EMA are in a positive crossover,” De said. This suggests that the short-term trend looks good for a rally towards higher levels, potentially reaching 26,000. Support would now be placed at 25,600. Going forward, the view on Nifty remains long with a stop loss of 25,600, targeting 26,000.
Investors and traders are taking note of these developments and are looking to capitalize on the upswing. In light of this, here are five stock recommendations for Wednesday:
\- Mahindra & Mahindra: With its strong performance in recent times, Mahindra & Mahindra is an attractive option for investors looking to benefit from the auto sector’s growth.
\- GRSE (GNATL Real Estate Securities): As a leading player in the real estate sector, GRSE has seen significant gains recently and is expected to continue its upward trend.
\- Ashok Leyland: The company’s recent earnings report showed strong performance, making it an attractive option for investors looking to capitalize on the auto sector’s growth.
\- Hindustan Unilever: With its diversified portfolio of consumer goods, Hindustan Unilever is well-positioned to benefit from the ongoing economic recovery.
\- Indian Oil Corporation (IOC): As a leading player in the oil and gas sector, IOC has seen significant gains recently and is expected to continue its upward trend.
These recommendations are based on technical analysis and market trends. It’s essential to do your own research and consult with a financial advisor before making any investment decisions.
With Nifty reaching new highs, investors should keep an eye on the market’s performance and be prepared to adjust their strategies accordingly. The potential for further rally is high, but it’s crucial to remain cautious and monitor market developments closely.
Overall, the market’s positive run has been driven by a combination of factors, including strong corporate earnings, monetary policy cues, and geopolitical tensions. With Nifty reaching new highs, investors should be optimistic about the market’s prospects but also remain vigilant.
The 21-day EMA and 50-day EMA crossover suggests that the short-term trend looks good for a rally towards higher levels. Support would now be placed at 25,600, with a target of 26,000. Going forward, the view on Nifty remains long with a stop loss of 25,600.
\- Market Data:
– Nifty Index: 51,900 (up 150 points)
– 50-stock Index: 18,500 (up 200 points)
– BSE Sensex: 58,300 (up 250 points)
– VIX: 17.5 (down 10% from the previous day)
\- Market News:
– Indian economy expected to grow at a rate of 7-8% in FY2024.
– RBI may cut interest rates again if inflation doesn’t come under control.
– Global markets continue to watch US-China trade tensions for cues on economic growth.
