Buy or sell stocks: The key benchmark indices of the Indian stock market snapped a three-day losing streak and kicked off September strongly, buoyed by upbeat Q1 GDP data. The Nifty 50 index opened higher and extended gains throughout the session, closing 198 points higher at 24,625. The BSE Sensex finished 554 points higher at 80,364, while the Bank Nifty index ended 346 points higher at 54,002.
Broader markets also saw robust buying, with the small-cap and mid-cap indices climbing over 1.5%. Sector-wise, the Nifty Auto index led the rally with a sharp 2.8% gain, followed by consumer durables, which rose 2.1%. Other sectors, such as IT, metals, energy, and oil & gas, advanced between 1.3% and 1.6%. Banks and financials posted modest gains. On the downside, FMCG ended flat, while pharma and media slipped slightly. Market volatility eased, with India VIX falling nearly 4%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has improved as the Nifty 50 index bounced back strongly from 24,400 levels. However, the key benchmark index is facing a hurdle at 24,800. The Prabhudas Lilladher expert said that a bullish or bearish trend can be assumed on the breakage of either side of this range.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index, after the weak sessions witnessed last week, has indicated a decent pullback from the trendline support zone at the 24,400 level, having a bullish candle formation to improve the bias slightly and a decisive move past the important 50-DEMA level at 24,800 zone shall improve the bias further. The index is hovering near the crucial zone with a head and shoulder formation on the daily chart, with the neckline near the 24,300 level, which shall be a crucial support level that needs to be sustained to maintain the overall trend intact.”
On the outlook of the Bank Nifty today, Parekh said, “The Bank Nifty index indicated a pullback from near the previous low made at the 53,500 zone to end near the 54,000 level and would need a decisive move to retest the important zone at the 55,000 level to improve the bias to some extent. As of now, the index is precariously placed, having got the next major support near the significant 200-period SMA at the 52,900 level, which needs to be sustained to maintain the overall trend intact.”
Parekh said that immediate support for the Nifty 50 index is 24,500, while the resistance is 24,800. The Bank Nifty would have the daily range of 53,500 to 54,600.
Vaishali Parekh’s intraday stock picks
Regarding today’s intraday stock market, Vaishali Parekh recommended these three buy-or-sell stocks: ABFRL, PNB Housing Finance, and KPIT Technologies.
1] ABFRL: Buy at ₹82, Target ₹88, Stop Loss ₹79;
2] PNB Housing Finance: Buy at ₹755, Target ₹780, Stop Loss ₹740; and
3] KPIT Technologies: Buy at ₹1226, Target ₹1270, Stop Loss ₹1200.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
