Market View by Ajit Mishra, Religare Broking
Markets staged a rebound on Wednesday, marking a strong start to the new financial year. The
Nifty 50 opened gap-up above the 22,600 mark, tracking positive global cues; however, selling pressure in the latter half of the session trimmed gains, with the index eventually settling at 22,679.40, up 1.56 per cent. Sectorally, metals, banking, and IT stocks led the recovery, while pharma witnessed relatively subdued participation. Broader markets outperformed, with midcap and smallcap indices advancing 2.5–3 per cent, reflecting a strong risk-on sentiment.
The recovery was primarily driven by optimism around potential geopolitical de-escalation, which improved global risk appetite. A decline in crude oil prices and bond yields further supported sentiment, particularly for emerging markets like India. Additionally, attractive valuations following the sharp correction in March, along with supportive global cues, triggered broad-based buying. The beginning of the new financial year also contributed to increased market activity.
From a technical perspective, the Nifty has witnessed a relief rally after a steep 11 per cent decline in March; however, sustainability remains critical. Immediate resistance is placed in the 23,000–23,200 zone, with a key hurdle at 23,500, while support is seen in the 22,300–22,000 range. Participants should closely monitor crude oil prices and the rupee for cues on the next directional move. From a trading standpoint, maintaining balanced exposure on both sides and preferring spread strategies over naked positions is advisable as a prudent risk management approach until the market stabilises.
Check – TOP GAINERS NSE | TOP LOOSER NSE
Stocks Recommendations
BSE Limited | LTP: ₹ 2867.60 | Recommendation: Buy | Target: ₹ 3060 | Stop-loss: ₹2775
BSE is exhibiting a constructive bullish structure, with price action consolidating above an upward-sloping long-term moving average, indicating underlying strength. The stock is currently hovering near the upper band of its consolidation zone, forming a sequence of higher lows and showing consistent demand near support levels. Volume dynamics remain stable, with intermittent spikes during advances, reinforcing the bullish sentiment. Traders may consider initiating long positions within the prevailing consolidation range.
Laurus Labs Limited | LTP: ₹ 1038.80 | Recommendation: Buy | Target: ₹ 1110 | Stop-loss: ₹ 998
Laurus Labs has been demonstrating notable strength, with the price reclaiming and sustaining above its short-term moving average after retesting its previous swing low. The formation of higher lows within a symmetrical triangle pattern suggests potential bullish continuation and accumulation. Momentum indicators are turning constructive, supported by volume expansion on price advances, further strengthening the positive outlook. Market participants may consider initiating long positions within the current consolidation range.
Cipla Limited | LTP: ₹ 1205.30 | Recommendation: Sell Futures | Target: ₹ 1155 | Stop-loss: ₹ 1230
Following a sharp decline from a distribution phase, the stock continues to exhibit weakness with no meaningful signs of reversal. It remains in a consolidation range below its 20 EMA, indicating clear bearish dominance. The stock has now broken down decisively from this range on strong volumes, reinforcing renewed selling pressure and the continuation of the downtrend. Notably, its inability to participate in the recent up move in the pharma index highlights relative underperformance and inherent weakness. Given the current technical setup, the bias remains negative, and traders may consider initiating short positions via futures to capitalise on the expected downside continuation. (Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own.)
