Market outlook: Nifty view by Ajit Mishra

Markets witnessed a corrective session on Wednesday, snapping the Tuesday’s gain amid weak global cues and sector-specific pressure. The Nifty opened gap-down and inched lower, followed by range bound traded throughout the session. It eventually settled around the day’s low at 24,378.10, declining approximately 0.81 per cent.

Sectorally, the tone was mixed with a sharp sell-off in IT stocks while auto, banking, and financials also witnessed profit booking after the recent rally. However, select energy, FMCG, and realty names showed relative resilience. Interestingly, the broader markets remained relatively stable, with midcaps flat and smallcaps gaining over a per cent, indicating selective participation.

The decline was primarily driven by a sharp correction in IT stocks after disappointing outlook commentary from a major IT player, HCL Tech, which dragged the entire sector lower. Additionally, renewed geopolitical concerns surrounding US-Iran developments kept crude oil prices elevated nearthe $100 mark, weighing on sentiment. 

Profit booking after the recent multi-day rally also contributed to the downside pressure.

We are eyeing possibility of consolidation in Nifty but the bias is likely to remain on the positive side, with support intact around 24,000-24,200 zone. Participants should keep a close watch on sectors/themes which are contributing on the rotational basis like metal, energy, railways and defence, and accumulate quality stocks on dips.

Stocks Recommendations: Stocks to buy on April 23, 2026:

The Federal Bank Limited | LTP: ₹296.45 | Recommendation: Buy | Target: ₹317 | Stop-loss: ₹285

Federal Bank share price has shown a strong recovery, delivering an upside breakout from a consolidation phase while sustaining above key moving averages. The formation of higher lows reflects strengthening demand, supported by rising volumes during advances, indicating accumulation. Price stability above established support zones further reinforces the bullish structure. Participants may consider initiating long positions in line with the prevailing upward trend.

NTPC Limited | LTP: ₹405.40 | Recommendation: Buy | Target: ₹433 | Stop-loss: ₹389

Power sector stocks have been exhibiting notable strength, staging a solid recovery after a prolonged corrective phase. Among them, NTPC stands out as a relative outperformer. NTPC stock has broken out of a base formation, successfully retested it, and resumed its upward trajectory without signs of trend deterioration. It continues to advance steadily while forming base-on-base structures, indicating healthy consolidation within an ongoing uptrend. The price and volume action suggest sustained buying interest, and traders may consider initiating long positions within the specified range.

JSW Energy Limited | LTP: ₹560.55 | Recommendation: Buy | Target: ₹599 | Stop-loss: ₹538

Amid strengthening sectoral momentum, lagging stocks are beginning to attract fresh buying interest and appear poised for the next leg of the up move following a corrective phase. JSW Energy share price is emerging from a consolidation of over a year, forming a solid base. The recent move toward the upper band of this range is supported by strong volumes, indicating a potential breakout and the start of a fresh upward leg. Considering the constructive price structure and favorable sectoral momentum, one may consider initiating long position as per the mentioned level.

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Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own.