Buy or sell stocks: Last week, the key benchmark indices of the Indian stock market witnessed profit booking at higher levels. The Nifty 50 index ended 0.24% lower, while the Sensex was down by 273 points. Among sectors, the PSU Bank index gained the most, rallying 4.66%, whereas the Capital Market index was the top loser, shedding 1.83%. During the week, the market once again faced resistance near 26,100/85,300 and reversed sharply. According to experts, a double top-like pattern has formed on daily and intraday charts, and a shooting star-like formation has appeared on weekly charts, indicating further weakness.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market is trading range-bound, as the Nifty 50 index is confined to the 25,700-26,100 range. A bullish or a 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 opening on a weak note, witnessed a recovery to touch the 25,950 zone but resisted and fizzled out, with profit booking seen to close near the 25,700 level, with bias and sentiment precariously placed as of now. As mentioned earlier, on the downside, the index has crucial support at the 20-day moving average (20-DMA) level of 25,525, which needs to be sustained to maintain the overall trend. At the same time, on the upside, it would need to breach above the 26,100 zone to improve the bias and expect further rise.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index is slowly slipping down towards the 57,500 zone with bias weakening and would need a revival in the coming sessions to expect some decent pullback. The index has the important 20-period MA at the 57,200 level, which would be the next support zone and would need to be sustained, whereas on the upside, a decisive breach above the 58,300 level is much needed to improve the bias, and thereafter, expect a further rise.”
Parekh stated that immediate support for the Nifty 50 index is located at 25,500, while the resistance level is at 26,000. The Bank Nifty is expected to have a daily range of 57,000 to 58,500.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh of Prabhudas Lilladher recommended three buy-or-sell stocks: CSB Bank, MCX, and UCO Bank.
1] CSB Bank: Buy at ₹410, Target ₹430, Stop Loss ₹400;
2] MCX: Buy at ₹9232, Target ₹9500, Stop Loss ₹9100; and
3] UCO Bank: Buy at ₹33, Target ₹38, Stop Loss ₹31.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
