Wednesday witnessed a bearish sentiment on Dalal Street, with investors adopting a cautious approach. After a day of fluctuating prices, major indices closed in the red.
New Delhi: The Indian stock market experienced a downturn on Wednesday; however, amidst this environment, select stocks offered investors new profit opportunities. While the Sensex and Nifty saw a slight decline, several stocks hit their 52-week highs, attracting investor attention.
Experts attribute the market volatility to the current geopolitical situation, global central bank monetary policies, and domestic economic indicators. Despite this, some stocks are considered attractive investments due to their b fundamentals and technical signals.
Market Downturn Continues
On Wednesday, the BSE Sensex closed down 138.64 points at 81,444.66. The NSE Nifty fell 41.35 points, settling at 24,812.05. While the market opened slightly higher, with the Sensex reaching 81,858.97, profit-booking dominated in the afternoon session.
Key factors contributing to the decline include uncertainty surrounding interest rates in the US and escalating tensions in West Asia. While the Federal Reserve is expected to hold rates steady at its next meeting, investor sentiment remains cautious.
Stocks Showing Profit Potential
Despite the broader market decline, some stocks showed potential for better returns. These include Reliance Power, RBL Bank, and IndusInd Bank. These stocks surpassed their 52-week highs, indicating b investor confidence.
Reliance Power
The company's improved balance sheet, reduced debt burden, and potential new power projects have fueled its rise. Technical analysts believe that if the stock remains above ₹28, it could reach ₹35-40.
RBL Bank
This mid-size bank has strengthened its credit profile and improved its growth rate in recent months. Increased investor confidence stems from the bank's deposit growth and transparent provisioning.
IndusInd Bank
This bank surged by 5.12%, a positive sign in a falling market. Strong credit demand and positive market sentiment surrounding Q1FY26 results are contributing factors.
Other Stocks
Authum Investment, Avenue Supermarts, Vedant Fashions, and Escorts also showed positive momentum. Most of these companies are performing well in their respective sectors and attracting investors.
Stocks to Avoid
Technical indicator MACD suggests bearish signals for some stocks, indicating a higher probability of decline in the coming days.
Inventurus Knowledge
Consistent price decline and low-volume trends suggest investors should maintain distance from this stock.
Hindustan Zinc
Pressure in the metal sector could cause this stock to slide. Raw material prices continue to pressure company margins.
MMTC
Uncertainty in government-owned companies and volatile trading are leading to selling pressure in this stock.
Max Healthcare
Recent profit-booking has pushed this stock below the technically overbought zone.
Ramco Cements
Weakness in the infrastructure sector and price declines are putting pressure on this stock.
Saregama India and AstraZeneca Pharma
Weaker-than-expected results are anticipated, coupled with high valuations, increasing investor caution.
Market Trends and Investment Strategy
The current market sentiment is mixed. Experts advise investors to buy high-quality stocks during dips.
Investor Actions:
- Focus on companies with b balance sheets and fundamentals.
- Don't panic over short-term downturns; focus on long-term investments.
- Monitor stocks that have reached their 52-week highs.
- Avoid stocks showing bearish signals.
Monitoring Technical Indicators
Technical indicators like MACD, RSI, and moving averages can help investors better understand market trends. Experts predict further potential upside for IndusInd Bank and Avenue Supermarts. Investors can add Hindustan Zinc and Ramco Cements to their watchlist, but additional caution is warranted before purchasing.
