Trading Guide: IRCON, NBCC, IOCL Intraday Picks Of Prabhudas On April 3; RBI Policy Meeting To Set Market Tone

Indian stock market may continue to see a cautious trend on Wednesday tracking selling pressure in global cues. In the early trade, Gift Nifty traded in red but the downside was at a slower pace. While Asian shares tumbled as early rate cut hopes faded after the latest reading of inflation. Although the dollar stayed steady, commodity prices rose which dampened the mood in equities. Overnight, Wall Street ended lower as well.

In the previous session, the market closed broadly flat but in red. The Sensex dipped by 11 points to 73,902, while the Nifty slipped by 9 points to 22,453. The Nifty Bank also experienced a minor setback, shedding 33 points to close at 47,545. However, the Midcap Index painted a different picture, surging by an impressive 567 points to reach 49,479, showcasing the continued outperformance of midcap stocks in the market.

On this performance, Vinod Nair, Head of Research, at Geojit Financial Services explained that the domestic market took a breather after achieving a fresh record high yesterday. Factors such as a rising dollar, increasing US bond yields, and a notable uptick in crude oil prices collectively dampened investor sentiment. Moreover, better-than-expected US manufacturing data raised worries about a potential delay in interest rate cuts. Despite these factors, mid and small-cap stocks continued their recovery rally, although concerns about high valuations lingered. Investors are eagerly anticipating guidance from the upcoming RBI monetary policy announcement for insight into near-term market direction.

Day Trade Guide:

Ajit Mishra, SVP - Technical Research, Religare Broking said, "It's a healthy pause around the record high, which may extend for a couple of sessions. We need participation from the heavyweights, especially banking majors to trigger the next leg of up move in the index. Meanwhile, the buoyancy in the broader market is encouraging but traders should stay selective and maintain a "buy on dips' approach."

Further, Siddhartha Khemka, Head - of Retail Research, at Motilal Oswal Financial Services said, "Global markets are expected to remain volatile ahead of key economic data scheduled to be released within two days. Further, US Fed Chair Powell's speech is also due on Wednesday which will be keenly looked upon. Key event to watch - US Job opening data to be released late today. After the strong move seen in the previous session, we expect the market to consolidate over the next few days keeping various key events in mind."

Giving a technical view on the Nifty 50, Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty traded within a range following a flat start. The index formed back-to-back doji patterns on the daily chart, typically indicating a pause before the next move. However, sentiment remains positive, with the Nifty closing above the important moving average. Momentum also remains positive, as indicated by the RSI in bullish crossover. Over the short term, the trend is positive, with the potential to reach 22,650-22,700. Support is positioned at 22,350-22,300 on the lower end."

Meanwhile, on Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index maintained a narrow consolidation pattern in anticipation of the RBI policy. With downside support at 47000 and upside resistance at 48000, a breakout in either direction could trigger significant market moves. Despite the consolidation, the overall sentiment remains bullish, suggesting that dips should be seen as buying opportunities, especially with immediate support around the 47400-47350 zone."

Stocks To Buy Today:

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher is expecting Nifty to find support and resistance around 22,300 and 22,600 on Wednesday. The analyst is expecting Bank Nifty to find support and resistance around 47,200 and 48,000 levels in the trading session.

Koothupalakkal has also recommended buying in three stocks on April 3rd. They are:

- BUY IRCON cmp 232.15 Stop Loss 227 Target 245

- BUY NBCC cmp 128.20 Stop Loss 125 Target 136

- BUY IOC cmp 174.20 Stop Loss 171 Target 183