The market has been on a gaining spree for eight consecutive trading sessions as of now. On Wednesday, traders will react to global cues movement as FOMC policy outcomes will take center stage. Also, the focus will be on Q4 earnings with major companies such as Titan, Havells, Godrej Properties, and Tata Chemicals queued on this day. Currently, Sensex is above 61,350 levels and Nifty 50 is slightly shy of the 18,150 mark.
On Tuesday, Sensex closed at 61,354.71 up by 242.27 points or 0.40%, while Nifty 50 ended at 18,147.65 higher by 82.65 points or 0.46%. In the broader market, both Smallcap and Midcap indexes saw strong momentum. Meanwhile, in terms of sectoral indices, metal, and IT stocks were top picks, followed by oil & gas, capital goods, and capital goods.
For Wednesday’s session, Ajit Mishra, VP – Technical Research, Religare Broking said, “We may see some consolidation citing caution ahead of the outcome of the US Fed meet however the tone is likely to remain positive so maintain the “buy on dips” approach. Sectors like energy, IT, and metal are now trying to catch up with the other key sectors, which is further adding to the buoyancy. Participants should align their positions accordingly.”
Apart from the companies that will announce their Q4 on Wednesday, other stocks like Adani Total Gas, Ambuja Cements, Punjab & Sind Bank, UCO Bank, and Tata Steel will also be in focus after their quarterly results.
On Nifty 50, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, the index is trading near a crucial resistance of 18,200 and once surpassed will witness further short covering towards the 18,400 level. The downside support is at 18,000 where aggressive put writing is visible. The undertone remains bullish and one should keep a buy-on-dip approach.
Further, according to Mitul Shah – Head of Research at Reliance Securities, Federal Reserve is expected to deliver a quarter-point rate rise after its meeting on Wednesday, taking its target range to 5-5.25%, as policymakers continue to tackle rapid consumer price rises.
Here are six stocks that are recommended as “Buy” on Wednesday:
Sumeet Bagaria, Executive Director at Choice Broking:
– Buy Federal Bank with a stop loss of ₹134 for a target price of ₹140-142
– Buy Indigo with a stop loss of ₹2025 for a target price of ₹2100-2120
Anuj Gupta, Vice President – Research at IIFL Securities:
– Buy Tata Steel with a stop loss of ₹105 for a target price of ₹116
– Buy UCO Bank with a stop loss of ₹28 for a target price of ₹36
Jigar Patel, Senior Technical Analyst at Anand Rathi
– Buy SBI Card for ₹782 with a stop loss of ₹770 for a target price of ₹798
– Buy HCL Tech at ₹1068 with a stop loss of ₹1055 for a target price of ₹1090
– Nifty spot index — support around 17800/17850 while resistance is seen in the range of 18200/18250
– Bank Nifty spot index is expected to have support in the range of 42500/42600 with resistance around 43400/43500
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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