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On Wednesday, Nifty 50 rose 0.52% to close at 24,813.45, supported by strong gains in all major sectoral indices. A recovery in foreign institutional investor (FII) flows helped improve sentiment after significant outflows in the previous session.

Additionally, positive quarterly results from select companies and a technical rebound contributed to the market's upward movement.

● Why it’s recommended: Strong financial performance, operational efficiency

● Key metrics: P/E: 62.89, 52-week high: ₹ 708, volume: ₹ 72.82 crore

● Technical analysis: Reclaimed its 21-DMA

● Risk factors: Regulatory risks, operational challenges in new facilities

● Buy at: ₹ ₹ 662.75

● Target price: ₹ 760 in three months

● Stop loss: ₹ 615

● Why it’s recommended: Robust project pipeline and capacity expansion, favourable government policies.

● Key metrics: P/E: N/A, 52-week high: ₹ 155.00, volume: ₹ 255.31 crore

● Technical analysis: Possible 100 DMA

● Risk factors: Capital-intensive nature of the sector

● Buy at: ₹ 106

● Target price: ₹ 122 in three months

● Stop loss: ₹ 99

Benchmark indices Nifty50 and Sensex rebounded strongly on Wednesday, ending a three-day losing streak, driven by buying in BFSI, Energy, and IT sectors. Nifty opened flat at 24,744 and climbed to an intraday high of 24,946, but gains were capped as the index slipped to 24,685 amid volatility in the afternoon. 

The market remained range-bound, reflecting indecision between bulls and bears. Despite the choppy session, the index formed a bullish candlestick with a long upper shadow, suggesting buying at lower levels and profit booking near resistance. All sectoral indices closed in the green, and the advance-decline ratio of 9:5 indicated strong broader market participation.

Although Nifty 50 breached and closed below 25,000 on Tuesday, the overall trend remains positive, with the index still trading above all key moving averages. The relative strength index (RSI) has turned downward but remains in bullish territory, currently positioned around 60.

Meanwhile, the MACD indicator has formed a negative crossover on the daily chart. However, it continues to hover above the zero line, suggesting that the broader upward momentum has yet to be decisively negated.

According to O'Neil’s methodology of market direction, Nifty50 transitioned from a “Rally Attempt" to a “Confirmed Uptrend".

The index found support in 24,650–24,700 on Wednesday and rebounded, ending the session on a positive note. However, it traded in a narrow range and failed to surpass 25,000, as profit booking emerged at higher levels. While the broader trend remains bullish, a sustained breakout above 25,000–25,200 is essential to confirm further upside momentum in the coming sessions. 

On the downside, immediate support is seen at 24,650, with the next critical support around 24,400, near the 21-day moving average (21-DMA).

Also Read: DLF’s Q1 launches to set the tone for FY26 pre-sales trajectory

Bank Nifty traded sideways amid a volatile session and ended on a positive note. Wednesday’s price action formed a Doji candle on the daily chart, reflecting indecision in the market.

Although the index breached its previous intraday low, it managed to recover and closed in the green. Bank Nifty hovered around its 21-day moving average (21-DMA), and a decisive close below this level could signal further weakness in the coming sessions. 

The index opened at 55,060, moved within a range of 55,270–54,690, and settled at 55,075.

The index continues to trade above all its key long-term moving averages, indicating a sustained positive trend. However, the momentum indicator, relative strength index (RSI), has flattened and is currently hovering at 57–58, suggesting a loss of upward momentum. 

Additionally, the moving average convergence divergence (MACD) has formed a negative crossover while remaining above the zero line. This reflects weakening short-term momentum within the context of an overall bullish structure.

According to O'Neil’s methodology of market direction, Nifty Bank transitioned from an ‘Uptrend Under Pressure’ to a “Confirmed Uptrend".

Also Read: IDFC’s growth hits a speed bump. Is the stock’s bounce-back at risk?

Bank Nifty traded largely sideways but managed to close above the 55,000 mark, indicating a tentative recovery. To regain bullish momentum in the coming sessions, the index must sustain above 55,000, which could pave the way for a move toward 56,000. 

However, failure to hold this threshold may lead to further consolidation or downside pressure. In such a scenario, the 21-day moving average, currently positioned around 54,400, is expected to act as immediate support in the near term.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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