Indian stock market snapped its three-day winning streak in the previous session, with the BSE Sensex dropping by 110.64 points. The dip was attributed to profit booking in select auto and bank stocks, as well as foreign fund outflows. Analysts are predicting continued volatility as investors closely monitor the Monetary Policy Committee (MPC) meeting by the Reserve Bank of India (RBI) starting Wednesday, with the first outcome for the new fiscal year to be announced on Friday.
The RBI’s rate-setting panel is expected to maintain a pause on key interest rates, considering the current economic growth trajectory and retail inflation data. Despite a fag-end recovery, the broader NSE Nifty also dipped slightly. However, the domestically-focused BSE smallcap and midcap indices saw gains, with mid and small-cap stocks continuing their recovery.
International factors, such as US Fed Chair Powell’s upcoming speech and rising crude oil prices, are also influencing market sentiment. Crude oil prices hit a six-month high on April 2, driven by supply risks from geopolitical tensions in Ukraine and the Middle East.
Intraday trading tips for Wednesday include recommendations from Prabhudas Lilladher for three stocks: Marksans Pharma, IRB Infrastructure Developers, and Kiri Industries. Analyst Vaishali Parekh suggests that Nifty 50 has higher targets of 22,800 and 23,400, with major support near the 22,000 zone.
For investors looking for potential opportunities in the market, Parekh advises keeping an eye on Nifty 50’s performance, with resistance near 22,500 and positive bias for upward movement. Bank Nifty is also expected to see some movement, with HDFC Bank maintaining its bias and other banks experiencing profit booking.
Overall, Parekh suggests support levels at 22,300 for Nifty 50 and a daily range of 47,200-48,000 for Bank Nifty. Investors are advised to consult with certified experts before making any investment decisions.
