Stock market today: Nifty levels to watch; trading views on Kotak Mahindra Bank, Cipla & Vedanta

Indian benchmark indices settled with big gains on Tuesday, driven by positive global and domestic trends including fall in dollar index, soft crude oil prices and FIIs inflows after a month on a net-net basis. BSE Sensex surged 1,131.31 points, or 1.53 per cent, to end the session at 75,301.26. NSE's Nifty50 soared 325.55 points, or 1.45 per cent, to settle at 22,834.30 for the day.

Nifty has convincingly closed above the 20 DEMA, while surpassing the 22,650–22,700 zone, which had acted as resistance for the past three weeks. Nifty may retest the psychological 23000 mark, said Rajesh Bhosale, Equity Technical Analyst, Angel One. "While the outlook remains positive, traders should remain cautious with the upcoming Fed policy, which could trigger volatility."

Some buzzing stocks including Kotak Mahindra Bank Ltd, Vedanta Ltd and Cipla Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services has to about these stocks ahead of Wednesday's trading session:

Kotak Mahindra Bank | Buy | Target Price: Rs 2,180-2,198 | Stop Loss: Rs 1,885

Kotak Bank has decisively broken out of a prolonged consolidation phase, signaling strong bullish momentum. The stock has breached its crucial resistance zone, which had acted as a price ceiling for an extended period. This breakout is supported by rising volumes, indicating strong buying interest. The 21-period and 55-period EMAs are trending upward, reinforcing the bullish sentiment. Additionally, the RSI is hovering above the 60 level, reflecting positive momentum. The MACD indicator has also shown a bullish crossover, suggesting further upside potential. With prices now trading above the key resistance level, Kotak Bank is well-positioned for a sustained rally. As long as it holds above the breakout zone, the stock could see further upside towards Rs 2,180 and Rs 2,198 in the near term.

Cipla | Buy | Target Price: Rs 1,588-1,620 | Stop Loss: Rs 1,434

Cipla has given a strong breakout above its falling trendline resistance, signaling a shift in momentum towards the bulls. The stock has been consolidating for the past few months, and this breakout indicates renewed buying interest. The price is now trading above the 21-period and 55-period EMAs, reinforcing the positive trend. The RSI is above 60, reflecting strengthening bullish momentum, while the MACD has shown a bullish crossover, further supporting the upside potential. The breakout has also been accompanied by an increase in volume, indicating strong participation from buyers. With growing technical tailwinds, prices are now looking to pave the way for Rs 1,588 and then Rs 1,620.

Vedanta | Buy | Target Price: Rs 496-505 | Stop Loss: Rs 426

Prices of Vedanta have exhibited strong bullish momentum, confirming a breakout above its trendline resistance. The stock has started forming a higher high and higher low structure, indicating the initiation of a sustained uptrend. The price has successfully moved above the 21-day and 55-day EMAs, reinforcing the bullish sentiment. The RSI is trading above 62, signaling strengthening momentum, while the MACD has given a positive crossover, supporting further upside potential. Additionally, the breakout is backed by increasing volume, confirming strong buying interest. As long as Vedanta sustains above Rs 426, the recent swing low, it is well-positioned for further gains toward Rs 496 and then Rs 505.