Top Stock Recommendations: Sagar Doshi of Nuvama recommends buying Indigo, SBI Cards, and Jubilant Ingrevia today

Stock Market News: Domestic equity benchmark indices, the Sensex and Nifty 50, began Wednesday's session on a higher note as metal stocks led the way ahead of of key macro data. 

The metal index climbed 1.5% and hit a record high as investors anticipated a rebound in demand following robust industrial data from the US and China.

On Wednesday, the NSE Nifty 50 opened up 77.50 points, or 0.34%, higher at 22,720.25, while the S&P BSE Sensex opened up 270.26 points, or 0.36%, at 74,953.96.

Also Read: Sensex Today Live Updates : Indices up at open; Sensex up 250pts, Nifty at 22,710; IT, Pharma, Health under pressure

The US CPI data that will be released today is important because it will influence how much the Fed reduces interest rates this year, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. It is noteworthy and encouraging for the market that US inflation has decreased by two thirds; nonetheless, the future course of inflation will have a major impact on the direction of stock markets throughout the world.

Tuesday's session saw significant profit-booking as benchmarks markedly reversed from their recent all-time highs. Profit-booking ruled the day as the Sensex reached a new all-time high of 75,124.28 and the Nifty 50 reached a new all-time high of 22,768.40.

Even yet, Bank Nifty managed to close the day higher and set a new all-time high of 48,960.75, showing its resilience against Tuesday's decline. The silver lining in Tuesday's trade was that India VIX continued to tumble, down at 11.35 levels, despite today's volatility, according to analysts. The Nifty SmallCap index was up 0.27% in the broader market space, outperforming the benchmark as well.

On Tuesday, the BSE Sensex closed 58.80 points lower or 0.08% to 74,683.70, while the blue-chip NSE Nifty 50 index ended 23.55 points lower or down 0.1% at 22,642.75.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on April 10

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Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Short covering by FII's has allowed the Nifty 50 to outperform the majority of other frontline indices, with the index claiming new highs to close above the 22,650 mark. On the higher side, 22,750 / 22,880 are the swing targets that remain open as the Nifty 50 has successfully breached the crucial supply zone of 22,250. The revised demand zone can now be trailed higher to this week's low of 22,500, said Sagar Doshi, Senior Vice President-Research, Nuvama Professional Clients Group.

Bank Nifty Outlook

A fresh breakout from the bullish cup and handle pattern in Bank Nifty has opened fresh swing targets of 48,900 / 49,500. The breakout level of 47900 of the bullish pattern will now act as support, added Sagar. 

Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, US Treasury yields to oil prices

Top Stock Recommendations by Sagar Doshi

On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:

InterGlobe Aviation Ltd (Indigo) (BUY): LCP: ₹3,632.95; Stop Loss: ₹3,500.00; Target Price: ₹3,900.00

According to Sagar, a swing breakout on the daily charts, also resulting in a fresh ATH on a closing basis, indicates bullish momentum. A positive crossover on the RSI also indicates the presence of bullish momentum. OI has also been steadily increasing in this series with a rise in prices, and suggests a long buildup in the stock.

Also Read: Stock market today: Sensex, Nifty 50 end in the red after hitting record highs; midcaps underperform

SBI Cards and Payment Services Ltd (BUY): LCP: ₹751.90; Stop Loss: ₹724.00; Target Price: ₹803.00.

Doshi stated that after a strong downtrend since June 2023, SBI Cards has managed to form a base around levels of 680–700. Prices have been able to breach the trendline, which has been acting as a supply zone since June 2023. This trendline breakout is accompanied by a surge in volume and indicates strong participation.

Jubilant Ingrevia Ltd (BUY): LCP: ₹491.05; Stop Loss: ₹475.50; Target Price: ₹530.00

According to Doshi, there is a strong swing breakout as the stock has registered a close above its previous swing high. Momentum indicators are inching higher, indicating sustained bullish momentum in the stock. Volume participation has also seen a rise in the last couple of trading sessions.

Also Read: Sensex at 1,00,000? This is what Mark Mobius has to say about Indian stock market

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.