NewsStocksSagar Doshi Recommends Dalmia Bharat, GAIL, Godrej Consumer Products Amid Market CorrectionSagar Doshi Recommends Dalmia Bharat, GAIL, Godrej Consumer Products Amid Market Correction
Domestic equity markets continued declining with Nifty 50 down 0.36% to 25,141 and Sensex falling 0.47% to 81,794.65 amid geopolitical concerns and disappointing earnings. Nifty 50 has corrected 1,200 points from record highs, breaking below key technical levels. Sagar Doshi from Nuvama recommends buying Dalmia Bharat (target ₹2,360.00) and Godrej Consumer Products (target ₹1,310.00) while suggesting selling GAIL (target ₹150.00) based on technical patterns and potential sector rotation toward defensive plays.
*this image is generated using AI for illustrative purposes only.
The domestic equity markets extended their decline on Wednesday, with both Nifty 50 and Sensex opening lower amid continued selling pressure. The Nifty 50 dropped 0.36% to 25,141, while the BSE Sensex fell 0.47% to 81,794.65 around 9:15 IST. This follows Tuesday's significant decline where both indices experienced their largest single-day percentage drop in over eight months, with Nifty 50 and Sensex falling approximately 1.40% and 1.30% respectively.
Market Pressures and Global Concerns
The equity markets are facing multiple headwinds including heightened global trade tensions and geopolitical instability. Trump's threats to purchase Greenland and potentially reignite a trade conflict with the European Union have contributed to market volatility. Additionally, the domestic earnings season has been characterized by underwhelming results from major players like Reliance Industries and ICICI Bank. The Indian rupee has also fallen to a historic low, adding to the risk-off sentiment in the markets.
Technical Outlook for Key Indices
Sagar Doshi, Senior Vice President- Research at Nuvama Professional Clients Group, provided technical analysis for the major indices:
Nifty 50 Analysis
| Parameter: | Level |
|---|---|
| Correction from Record High: | 1,200 points |
| Key Break Level: | 25,500 (50% retracement) |
| Initial Downside Target: | 25,120 (200 DMA) |
| Secondary Target: | 24,900 |
The index has broken below its 50% retracement mark near 25,500, with pressure cascading due to geopolitical headwinds.
Bank Nifty Technical View
Bank Nifty has closed below its past two days' low and is resting at its two-month rising trendline after completing the 59,900+ target last week. A break below 59,300 is seen as a trigger to open the index for targets of 58,750 and 58,600.
Stock Recommendations
Doshi has provided three specific stock recommendations with detailed technical rationale:
Buy Recommendations
Dalmia Bharat Ltd
| Parameter: | Details |
|---|---|
| Last Closing Price: | ₹2,191.00 |
| Stop Loss: | ₹2,116.00 |
| Target: | ₹2,360.00 |
| Technical Pattern: | Rounding pattern with higher low |
| Key Level: | Sustained move above 200 DMA |
The stock has closed at a three-month high after forming a rounding pattern, supported by a higher low on daily charts.
Godrej Consumer Products Ltd
| Parameter: | Details |
|---|---|
| Last Closing Price: | ₹1,234.00 |
| Stop Loss: | ₹1,206.00 |
| Target: | ₹1,310.00 |
| Technical Pattern: | 15-month trendline breakout |
| Sector Advantage: | FMCG defensive play |
After a 15-month trendline breakout at the start of the current calendar month, the stock has been in sideways consolidation. With broader market volatility, the FMCG basket could see buying interest as investors seek defensive plays.
Sell Recommendation
GAIL (India) Ltd
| Parameter: | Details |
|---|---|
| Last Closing Price: | ₹161.00 |
| Stop Loss: | ₹168.00 |
| Target: | ₹150.00 |
| Technical Signal: | 9-month closing low |
| Expected Move: | Retest of March 2025 low |
GAIL has ended at a nine-month closing low after witnessing repeated selling pressure since the gap down seen in the last week of November 2025.
Market Outlook
The current market environment reflects a combination of domestic and international factors creating uncertainty. The technical analysis suggests further downside potential for the broader indices, while sector rotation toward defensive stocks like FMCG could provide opportunities. Investors are advised to exercise caution and consult certified experts before making investment decisions, as these recommendations represent individual analyst views and not guaranteed outcomes.
16
