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Synopsis: The market started FY26 with corrections, but a rebound is expected soon. Vodafone Idea's Rs36,950 crore equity issuance will raise the government’s stake to 48.99%, possibly strengthening its financial position. Trent Ltd remains an attractive investment with potential upside to Rs6,000. HAL should be approached cautiously, with investment only recommended if it sustains above Rs4,380. The broader equity market has faced a sharp decline, but experts remain optimistic about recovery.
Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking, shared his outlook on the market and these three stocks. According to him, the new financial year 2025-26 (FY26) has begun with some corrections in the market. However, he anticipates a strong rebound in the coming days, with the Nifty50 likely to reach 23,600, provided it maintains a stop-loss at 23,300. If the index crosses 23,600, it could surge further to 23,800-24,500 levels.
Discussing Vodafone Idea’s stock performance, Parar expects an upside movement towards Rs8.50-Rs10.50. He advises investors with a positive outlook to hold their positions, noting that the stock has strong support at Rs6.50. Given the government’s increasing stake and the recent approval for equity conversion, the company’s financial outlook might see some improvement in the long run.
Turning to Trent Ltd, Parar finds the stock attractive based on its daily charts. He suggests that investors can consider entering at current levels, with strong support at Rs5,290. The first target for the stock is set at Rs5,670, and if it breaks past this level, it could move up to Rs6,000.
For Hindustan Aeronautics Ltd (HAL), Parar advises caution, recommending that investors avoid taking positions at the current market price. However, if the stock sustains above Rs4,380, it could witness an upside move towards Rs4,800-Rs5,000, making it a potential buy at that level.
Meanwhile, domestic equity benchmarks experienced a significant decline, with the 30-share BSE Sensex falling by 1,127 points (1.46%) to 76,287. The broader NSE Nifty index also dropped 281 points (1.20%) to 23,238. Sectors such as IT, financials, consumer goods, metals, and pharma were among the worst affected, dragging the market down. Mid-cap and small-cap indices also saw losses of up to 0.75%.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their research or consult a financial advisor before making investment decisions.
