Motilal Oswal Analyst Recommends Premier Energies and Varun Beverages for Short-Term Investment

Indian Stock Market Plunges Amid Geopolitical Uncertainty and Rising Oil Prices

The Indian equity benchmarks opened sharply lower on Wednesday, with the Sensex plummeting 1,000 points to 73,650.08 at 12:01 IST, while the Nifty 50 fell 300 points to 23,179.20. Market sentiment remained fragile amid uncertainty surrounding ongoing US-Iran negotiations and escalating tensions in the Middle East, keeping energy markets on edge.

The global benchmark for crude oil, Brent crude, rose 0.89% to $96.85 per barrel, raising concerns over inflation and India's import bill. Foreign institutional investors (FIIs) continued to exert pressure on domestic equities, selling shares worth ₹8,362.92 crore on Tuesday, according to exchange data. The US Trade Representative (USTR) has proposed imposing an additional 12.5% tariff on imports from 54 countries, including India, alleging that these countries have inadequate measures to prevent the import of goods produced using forced labor.

Market participants are closely monitoring the potential implications of the proposed tariffs on global trade flows and India's export-oriented sectors. The Indian stock market is highly sensitive to global events, and the current geopolitical uncertainty is likely to continue to impact market sentiment in the near term.

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Market Outlook

Ruchit Jain, Head of Equity Technical Research at Motilal Oswal Financial Services, expects the Nifty 50 to consolidate in a range in the near term, with 23,100-23,000 as the immediate support zone. On the higher side, 23,700 and 24,000 are the immediate hurdles that need to be surpassed for an upmove. Till the index consolidates, traders should focus on stock-specific opportunities from the broader markets.

Stock Recommendations

Ruchit Jain recommends the following stocks for buying or selling in the near term:

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Premier Energies has been forming a 'Higher Top Higher Bottom' pattern, suggesting an uptrend. The stock has broken out of a 'Bullish Flag' pattern on the weekly charts, and volumes have increased during the recent upmove. This indicates the stock can continue its uptrend and can relatively outperform in the near term.

Varun Beverages has seen an uptrend in the last couple of months, supported by improving volumes. The stock has been attracting buying interest on declines, and the 20 DEMA has been acting as strong support. The RSI oscillator on the weekly and the monthly charts is hinting at a positive momentum, making it a good stock to accumulate.