Bulls have continued to bless Indian equities for seven days in a row. And expectations of Wednesday having a similar mood have taken rounds. There is a possibility of some resistance in the market with a focus on TCS’ Q4 earnings scheduled along with IIP and inflation data after market hours. On the previous day, Sensex closed at 60,157.72 up by 311.21 points or 0.52%, while Nifty 50 jumped by 98.25 points or 0.56% to end at 17,722.30. In seven sessions, both 30-scrip and 50-scrip benchmarks have climbed between 4-4.5%.
On Tuesday, smallcap stocks recorded a sharp upside, meanwhile, banking and metal stocks outperformed benchmarks. Except for IT and a slight downside in realty stocks, the rest of the sectoral indices were in the green.
Bank Nifty ended at 41,366.50 up by 531.85 points or 1.3%. While the Nifty IT index dipped by 365.85 points or 1.26% to close at 28,675.75 ahead of TCS and Infosys earnings.
In the holiday-shortened week, TCS will announce its financial results for the fourth quarter of FY23 on Wednesday followed by Infosys on Thursday. While India will announce the March CPI inflation print and February IIP data later on April 12 as well, which will give clear some fogs on what could be RBI’s next policy action.
Day trade guide by Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher for Wednesday’s session:
She said, Nifty opened with a gap up on a positive note and scaled the 17750 zone in the morning session where it found resistance and with swings witnessed during the session ended on a positive note above 17700 levels anticipating for a further upward move. There is a hurdle near the 17750-17800 zone which needs to be crossed decisively to confirm further move till the target of 18200 levels.
Further, she added, “BankNifty witnessed a strong move crossing the important 41200 zone and closing on a strong note near 41400 levels improving the bias and sentiment overall. A decisive move past the previous peak zone of 41650-41700 levels would strengthen the trend to anticipate for next targets of 42600-42800 levels. The support for the day is seen at 17600 levels while the resistance is seen at 17900 levels. BankNifty would have the daily range of 41000-42000 levels.”
Parekh recommends buying the following stocks:
Buy Lemon Tree at 77 with a stop loss 75 and a target price of 82
Buy Jindal Steel at 563 with a stop loss 554 and target 585
Buy Escorts at 1895 with a stop loss 1870 and target 1950
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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