The domestic equity market remained range-bound on Wednesday, testing investor patience through the session. Trading opened flat and indices moved within a narrow band throughout the day. The Nifty eventually closed at 25,665.60, down 0.26 percent.
Market volatility persisted and investor sentiment remained cautious, resulting in buying interest being limited to select stocks.
On the sectoral front, metal and energy stocks showed relative resilience, while realty and information technology stocks came under pressure. A mild recovery in mid-cap and small-cap stocks indicated that buying interest at lower levels has not entirely faded.
Foreign institutional investors continued to remain net sellers, which weighed on market sentiment. Geopolitical tensions and uncertainty surrounding global trade conditions also kept investors cautious. Although there was some optimism in early trade, sustained momentum failed to materialise, prompting investors to limit exposure to selective stocks rather than take aggressive positions.
From a technical perspective, the Nifty attempted to hold the key support near 25,600, corresponding to its 100-day exponential moving average. This level is considered important for the market in the near term. While the benchmark remains range-bound, sector-specific and stock-specific buying opportunities are emerging, according to market participants.
Religare Broking Senior Vice President (Research) Ajit Mishra said that despite the weak broader market, some large-cap stocks with relatively stable fundamentals and technical setups remain attractive. Based on this view, he has recommended buying Axis Bank, HCL Technologies and Tata Steel.
Axis Bank remains on investors’ radar, with the stock trading at a last traded price of around Rs 1,298.80. According to Mishra, the stock has shown consistent strength over the recent period. After emerging from a corrective phase, it has managed to sustain at higher levels.
He has set a target price of Rs 1,385 for Axis Bank, with a stop loss at Rs 1,250. Strong volumes and price action indicate potential for further upside, he said.
HCL Technologies has continued to display relative resilience despite pressure on the IT sector. The stock is currently trading near Rs 1,668.50. Mishra said the broader trend remains intact, with the stock showing a recovery from its medium-term moving average and attracting buying interest on declines.
He has assigned a target price of Rs 1,795 for HCL Technologies, with a stop loss at Rs 1,600.
In the metal space, Tata Steel has benefited from recent sectoral strength. The stock is trading at around Rs 189.25. According to Mishra, Tata Steel has recently recorded a new high, indicating a technical breakout after a prolonged period of consolidation.
He has set a target price of Rs 203 for Tata Steel, while recommending a stop loss at Rs 182.
