On Wednesday, Nifty closed at 24,973. IT, Financial, and Energy stocks remained b. Brokerage advised investing in Bajaj Finance, Coal India, and HAL, with targets up to Rs 4,880.
Stock Today: On Wednesday, the Indian stock market closed with strength for the second consecutive day. Nifty 50 closed around 0.5 percent higher at 24,973. The market opened with gains in the morning and showed stability in the first half. However, a slight decline was recorded towards the end of the day, but the market closed in the green.
According to experts, the recent rally in the market is primarily due to India-US trade talks and the return of foreign investors. In this report, we will discuss which stocks investors should keep an eye on and which sectors are supporting the market.
Performance of IT Sector and Other Sectors
The IT sector led the market today, closing with a gain of approximately 2.5 percent. Additionally, the Realty, Financial, and Energy sectors also performed bly.
On the other hand, investors booked profits in the Auto sector after several days of gains, leading to a decline of about 1 percent. Midcap and Smallcap stocks also recorded gains of 0.75 to 1 percent.
Experts believe that the current market rally can be sustainable if the IT and Banking sectors continue to provide support.
Reasons for Market Rally
Ajit Mishra of Religare Broking stated that there are two main reasons behind the current market strength.
- Positive signals regarding the trade deal between India and the United States.
- The return of foreign institutional investors (FPIs) to stock purchases.
Mishra further commented that Nifty is gradually moving upwards. He predicted that if sustained support comes from the IT and Banking sectors, Nifty could reach the levels of 25,250 to 25,400. Strong support on the downside is expected between 24,650 and 24,750.
Brokerage Picks: Focus on 3 Stocks
Ajit Mishra has identified three stocks that present good investment opportunities. These stocks are Bajaj Finance, Coal India, and Hindustan Aeronautics Limited (HAL).
1. Bajaj Finance
Bajaj Finance shares closed at Rs 967.95 on Wednesday. According to Ajit Mishra, the long-standing resistance has now been broken, and the stock is showing a bullish trend.
- Target Price: Rs 1,040
- Stop-Loss: Rs 930
Experts believe there are long-term investment opportunities in this stock, and the rally could continue if market support persists.
2. Coal India
Coal India shares closed at Rs 391.90. The stock has shown a breakout above its downtrend line. Volume has also increased, strengthening the possibility of further upside.
- Target Price: Rs 412
- Stop-Loss: Rs 378
Experts believe that investors can expect profits in Coal India if market sentiment remains favorable.
3. Hindustan Aeronautics Limited (HAL)
HAL shares closed at Rs 4,557.50. The defense sector is showing signs of recovery, and HAL has witnessed a b bounce from its 200-day moving average (DMA).
- Target Price: Rs 4,880
- Stop-Loss: Rs 4,400
Investors in HAL can benefit from the current recovery in the defense sector.
Expert Advice for Investors
Ajit Mishra has advised all investors to:
- Always set a stop-loss before investing in stocks.
- Keep an eye on market trends.
- The trend of Nifty can be gauged by the support from the IT and Banking sectors.
Long-term investors can consider adding Bajaj Finance, Coal India, and HAL to their portfolios.
Disclaimer: This opinion is by Ajit Mishra of Religare Broking. Investments in the stock market are subject to risk. Please consult your financial advisor before investing.
