Nifty 50 trade setup, US Fed outcome, IPO market action Eight stocks to buy or sell
The Indian stock market extended its losing streak for the third straight session on Wednesday, closing at nearly a one-month low as investors remained cautious ahead of the US Federal Reserve’s policy outcome. A late selloff in consumer durables, private banks, and IT stocks dragged indices lower, reflecting heightened volatility across global markets.
Market Performance: Nifty & Sensex at One-Month Low
In a choppy session, the BSE Sensex slipped 275 points, or 0.32%, to close at 84,391 its lowest level since November 11, according to PTI. Similarly, the NSE Nifty50 fell 82 points, or 0.32%, to settle at a month’s low of 25,758. Investors adopted a wait-and-watch approach as global cues remained uncertain.
US Fed Outcome: Another Rate Cut
The United States Federal Reserve announced a 0.25% cut in its benchmark interest rate, bringing the federal funds rate to a three-year low. The new target range now stands at 3.5%–3.75%, down from 3.75%–4%.
This is the Fed’s third consecutive rate cut since September, totalling a 0.75% reduction for the year.
Ahead of the announcement, the CME FedWatch Tool had assigned an 87.4% probability to a 25 bps cut. The two-day meeting was held between December 9 and 10, and the decision is expected to influence global liquidity, emerging market flows, and currency trends.
IPO Market Buzz: High Action Today
Primary market activity remains robust.
Nephrocare Health Services and Park Medi World enter their second day of subscription.
Wakefit Innovations and Corona Remedies will finalise their allotments today.
With multiple listings and fresh issues lined up, IPO sentiment continues to draw retail and institutional interest.
Market Outlook: Global Cues & FII Pressure
Vinod Nair, Head of Research at Geojit Financial Services, noted that global markets remain sensitive due to rising Japanese bond yields and expectations of BOJ policy tightening. This is creating risk-off sentiment across emerging markets.
Indian markets, he added, are mirroring global caution, further impacted by:
Persistent FII outflows
Weakened INR
Uncertainty in U.S.–India trade negotiations
In the near term, market direction is likely to be governed by central bank guidance and clarity on trade discussions.
Trade Setup for Thursday
Rupak De, Senior Technical Analyst at LKP Securities, highlighted that bears continued to dominate as Nifty revisited yesterday’s low, reinforcing a bearish bias.
Key levels to watch:
Immediate support: 25,700
Support zone if breakdown occurs: 25,610 → 25,530
Upside resistance: 25,870 and 25,960–26,000
The index has slipped below the 50% retracement of the previous rally from 25,318 to 26,325, indicating sustained weakness.
Eight Stocks to Buy or Sell Today
Market experts from Choice Broking, Anand Rathi, and Prabhudas Lilladher have recommended the following eight intraday picks:
1. Eicher Motors (Buy) – Sumeet Bagadia
Entry: ₹7228
Stop Loss: ₹6975
Target: ₹7734
Bagadia notes a strong uptrend, fresh all-time high (₹7294), and bullish RSI (60.24). A breakout above immediate resistance may trigger the next rally.
2. AU Small Finance Bank (Buy) – Sumeet Bagadia
Entry: ₹994
SL: ₹960
Target: ₹1062
The stock is at all-time highs with EMAs trending upward. A close above ₹1008 may accelerate momentum.
3. ICICI Bank (Buy) – Ganesh Dongre
Entry: ₹1360
SL: ₹1345
Target: ₹1398
A bullish reversal pattern suggests a potential retracement towards ₹1398 with strong support at ₹1345.
4. Punjab National Bank (Buy) – Ganesh Dongre
Entry: ₹118
SL: ₹114
Target: ₹125
The stock reversed from key support at ₹114 and may rally toward its next resistance levels.
5. Infosys (Buy) – Ganesh Dongre
Entry: ₹1585
SL: ₹1560
Target: ₹1625
Infosys displays a clean bullish formation with renewed upward strength from strong support.
6. Paradeep Phosphates (Buy) – Shiju Koothupalakkal
Entry: ₹157
SL: ₹154
Target: ₹166
After correcting from 200 levels, the stock has regained momentum with rising volumes and RSI reversal.
7. Chennai Petroleum (Buy) – Shiju Koothupalakkal
Entry: ₹945.80
SL: ₹925
Target: ₹990
A positive candle above 50 EMA indicates a potential continuation of the uptrend with RSI well-positioned.
8. Thirumalai Chemicals (Buy) – Shiju Koothupalakkal
Entry: ₹229.78
SL: ₹225
Target: ₹247
A rebound from major support at 209, combined with strengthening RSI, signals further upside in the near term.
Conclusion
The Indian markets continue to navigate global volatility, central bank cues, and heightened investor caution. While benchmarks remain under pressure, technical analysts have identified selective opportunities for traders. As always, market conditions can shift rapidly, and investors should approach trades with disciplined risk management.
Disclaimer:
This blog is for educational purposes only. Stock recommendations are from individual analysts and brokerage firms. Investors are advised to consult certified financial experts before taking investment decisions.
