Nifty Signals Big Gap-Down Start, Analyst Suggests Three Stocks to Consider Buying

Indian Stock Market Sees Highly Volatile Trading on Wednesday

The key benchmark indices of the Indian stock market witnessed highly volatile trading on Wednesday. The market opened on a weak note amid a sharp sell-off in IT stocks, persistent global uncertainties, and continued investor caution. Selling pressure dominated the first half of the session, dragging the Nifty 50 index lower towards 23,151. However, strong buying interest at lower levels triggered a sharp recovery in the latter half, helping the market erase a significant portion of its intraday losses to close around 23,400.

At close, the Sensex was down 303 points or 0.41% at 74,346, while the Nifty declined 77 points or 0.33% to settle at 23,405. On the sectoral front, Nifty IT emerged as the biggest laggard, plunging 5.57% amid broad-based selling across technology stocks. Weakness was also visible in the Realty and FMCG segments. On the other hand, buying interest was witnessed in PSU Banks, Private Banks, Pharma, and Healthcare stocks, which provided support to the broader market recovery.

The broader market also traded with a negative bias. The Nifty Midcap 100 index declined 0.42%, while the Nifty Smallcap 100 index slipped 0.11%.

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Gift Nifty Live Chart Signals a Gap-Down Opening

The Gift Nifty live chart is signalling a big gap-down opening for the Indian stock market as the index is trading at a discount of nearly 190 points from Nifty Futures' Wednesday's close. According to Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, the Indian stock market may open gap down on Thursday.

Market Outlook

Vaishali Parekh believes that the key benchmark index is trading in the 23,200 to 24,000 range. A bullish or bearish trend can be assumed on the breakage of either side of this range. She also mentioned that the Nifty 50 index once again has been gripped within the range, having the resistance near the 50-EMA zone at the 24,000 level, which needs to be breached decisively to trigger a fresh upward move. While on the downside, the 23,200 zone is maintained as a good support.

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Bank Nifty Outlook

On the outlook of the Bank Nifty today, Vaishali Parekh said that the key index witnessed a highly fluctuating session, making a low of almost 53,000 zone during the intraday session and thereafter, staged a strong revival to move past the 54,000 level to slightly improve the bias, expecting a further rise in the coming sessions. The upside is capped near the tough resistance barrier of the 55,400 zone, which needs to be breached decisively above, while the downside is maintained with strong support visible near the 53,000 zone.

Stock Recommendations

Vaishali Parekh recommended the following three buy-or-sell stocks: