Markets witnessed a strong rebound on Wednesday, with benchmark indices gaining over 1 per cent amid encouraging quarterly earnings and sustained buying in IT heavyweights. According to reports from Business Standard, the Nifty traded with a positive bias throughout the session and settled at 24,250.20, up around 1.10 per cent. Technically, the Nifty has reclaimed the immediate resistance zone formed by the 20-day and 100-day DEMA, indicating an improvement in the near-term technical setup. The next crucial hurdle is placed around the 24,400 level, which coincides with the 200-day DEMA, with a sustained move above this zone potentially paving the way for an extension towards the 24,600 mark. However, participants remained cautious ahead of the US Federal Reserve's policy decision, while geopolitical tensions in the Middle East and elevated crude oil prices continued to remain on investors' radar.
Sectoral participation remained firmly positive, with IT continuing its outperformance supported by strong buying across large-cap technology stocks. As reported by Business Standard, metals, FMCG, and pharma also contributed to the rally. Broader markets participated in the upmove, with both the midcap and smallcap indices advancing in the range of 0.80 per cent–1.49 per cent, reflecting improved market breadth and renewed risk appetite. Investor sentiment improved on the back of encouraging quarterly earnings from select companies and continued strength in the IT pack, with a stronger rupee further supporting sentiment. The sustained rally was supported by encouraging quarterly earnings from select companies and continued strength in the IT pack, with a stronger rupee further supporting sentiment.
According to recommendations from Religare Broking's Ajit Mishra, three stocks have been identified for potential investment. Glenmark Pharmaceuticals Limited is recommended as a buy with a long-term price of ₹2,261.70, target of ₹2,420, and stop-loss at ₹2,180. The stock has consistently held above its long-term moving average and ascending trendline support, with current breakout potential from the pivot towards the upper band of the triangular pattern. Power Finance Corporation Limited is recommended as a buy with a long-term price of ₹427.10, target of ₹458, and stop-loss at ₹411. The stock has shown renewed strength after reclaiming its long-term moving average and confirmed breakout above the descending trendline.
TVS Motor Company Limited is recommended as a buy with a long-term price of ₹4,075.60, target of ₹4,360, and stop-loss at ₹3,920. As reported by Business Standard, TVS Motor has confirmed a decisive breakout from a prolonged consolidation phase, supported by improving trading volumes, indicating strengthening bullish sentiment. The stock continues to trade above its key moving averages, reaffirming the prevailing primary uptrend, with formation of higher highs and higher lows coupled with supportive momentum indicators suggesting the positive trend is likely to persist. Investors may consider accumulating the stock within the recommended buying range.
With the broader trend turning constructive once again, Religare Broking continues to advocate a stock-specific 'buy-on-dips' approach, with preference for relatively stronger sectors such as auto, pharma, and now metals. According to the report, investors may consider accumulating the recommended stocks within their respective buying ranges while maintaining disciplined risk and position management. On the downside, the 24,050–24,150 region is expected to provide immediate support in the event of any profit-taking, while the 24,400 level represents the next crucial hurdle for sustained market momentum. Considering the sustained stability in price action and the sectoral strength, long positions may be considered in the stock recommendations.
