Stock Market Outlook
Markets traded with heightened volatility on Wednesday and ended marginally lower amid mixed cues. After a firm start, the
Nifty extended its gains during the first half of the session; however, a sharp decline in heavyweight stocks across sectors erased all the gains and dragged the index lower. Consequently, it settled near the day’s low at 23,214.95, down 0.12 per cent.
Sectoral participation remained largely weak and choppy, with energy, realty, and metal stocks emerging among the top losers, while FMCG and select banking counters displayed relative resilience. Broader markets underperformed the benchmark indices, with both midcap and smallcap indices declining around 1.5 per cent, reflecting a cautious undertone across the broader market.
Investor sentiment remained fragile amid rising geopolitical tensions in the Middle East following fresh developments involving the US and Iran, which initially pushed Brent crude prices higher. However, resilience in select heavyweight counters, particularly banking majors, helped limit the downside. Market participants also remained watchful of foreign institutional flows, movements in the rupee, and global bond yields, all of which continue to influence near-term market direction.
Technically, the Nifty continues to face selling pressure on every rise despite the recent strength in the banking pack. The key hurdle remains intact around the 20-day EMA zone near 23,550. We believe lingering geopolitical tensions and persistent foreign fund outflows are keeping market participants cautious, and a meaningful relief rally may remain elusive in the near term. In this environment, traders should align their positions accordingly, preferring pharma, healthcare, and banking stocks on the long side, while maintaining selective short positions in weaker pockets as a hedge against overnight risk.
Stocks recommendations today
Fortis Healthcare | LTP: ₹ 989.00| Recommendation: Buy | Target: ₹ 1060| Stop-loss: ₹ 950
We are witnessing notable strength in the pharma and healthcare space, and
Fortis Healthcare is participating in this positive trend. The stock has registered a decisive breakout above its previous swing high, supported by a significant increase in trading volumes, indicating strengthening bullish momentum and potential trend continuation. It continues to trade comfortably above its key moving averages, reaffirming a well-established uptrend across multiple timeframes. Additionally, momentum indicators remain supportive, reinforcing the positive outlook.
RBL Bank | LTP: ₹ 356.95 | Recommendation: Buy | Target: ₹ 385| Stop-loss: ₹ 343
RBL Bank continues to display a strong bullish structure, characterized by a consistent pattern of higher highs and higher lows, reflecting sustained buying interest. The stock is trading within a rising channel and remains firmly above its short- to medium-term moving averages, reinforcing the prevailing uptrend. Healthy volume participation during upward moves further validates the strength of the ongoing momentum.
ETERNAL | LTP: ₹ 240.00| Recommendation: Sell Fut | Target: ₹ 230| Stop-loss: ₹ 247
Eternal remains under pressure, maintaining an intermediate-term lower top–lower bottom formation that signals a prevailing downtrend. Following a brief recovery, it consolidated below its medium- to long-term moving averages and repeatedly faced resistance near those levels. Fresh selling pressure has since emerged, leading to a breakdown from a bearish continuation pattern. Traders may consider initiating short positions through futures as per the mentioned levels.
================================================= (Disclaimer: Ajit Mishra is senior vice president of research at Religare Broking. Views expressed are his own.)
