Market view by by Ajit Mishra, Religare Broking
Markets witnessed a strong rebound on Wednesday, extending gains after the recent consolidation phase, supported by favourable global cues. The Nifty opened gap-up and remained range-bound throughout the session and finally settled at the 24,231.30 level, up by 1.63 per cent. The rally was broad-based, with all major sectors trading in the green—led by IT, realty and energy. Broader markets outperformed once again, with midcap and smallcap advancing over 2 per cent, reflecting strong risk-on sentiment and improved market breadth. The up move was primarily driven by improving global sentiment amid renewed hopes of US–Iran negotiations, which led to a sharp cooling in crude oil prices below the $100 mark. This eased concerns around inflation and supported emerging market equities like India. Stability in the rupee and a decline in volatility (India VIX) also contributed to the positive undertone, while optimism around the ongoing earnings season kept sentiment buoyant.
From a technical perspective, the Nifty has again reclaimed the 24,000 mark, indicating strengthening momentum in the ongoing recovery phase. We are now eyeing the index to inch towards the 24,350–24,600 zone, while the major hurdle would be around 24,800, i.e. 200 DEMA, while the support has shifted higher to the 23,900–23,600 range. We thus reiterate our positive yet cautious stance with a focus on stock selection and overnight risk management. While the broader indices are showing noticeable outperformance in the recent rally, participants should stick only with the quality names.
Stocks Recommendations
Glenmark Pharmaceuticals | LTP: ₹2258.4| Recommendation: Buy | Target: ₹2410| Stop-loss: ₹2175
Glenmark Pharmaceuticals has successfully retested the neckline of its broader triangular breakout and rebounded, signalling underlying strength in its price structure. The stock has sustained above this level, forming an elevated base through range-bound consolidation while holding above key moving averages.
Technically, it has established a buying pivot by breaking out of this base, indicating a continuation of the uptrend. Traders may consider accumulating the stock within the specified range.
State Bank of India | LTP: ₹1071.5| Recommendation: Buy | Target: ₹1140| Stop-loss: ₹1030
We are seeing noticeable strength in the rate-sensitive pack, and SBI is trading in sync with the move. It has staged a recovery after the retest of its long-term moving average, i.e. 200 DEMA. It has also established a buying pivot near the medium-term moving average support zone while clearing the resistance zone around the 1,080 level. This indicates that the recovery could extend further and may lead to a resumption of the broader uptrend.
Tata Power Company | LTP: ₹421.85| Recommendation: Buy | Target: ₹450| Stop-loss: ₹406
Tata Power is exhibiting constructive bullish momentum, supported by a consistent formation of higher highs and higher lows. The price action is confined within an ascending channel and has surpassed a prior swing high, indicating improving sentiment and a potential trend continuation. Sustained trading above key moving averages, coupled with a recent surge in volume, reflects strengthening momentum and underlying demand. Participants may consider initiating long positions as per the given levels.
(Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own.)
