Buy or sell stocks: The Indian stock market ended on a cautious note on Wednesday. Despite a positive start, the key benchmark indices gradually pared early gains as profit booking at higher levels weighed on sentiment. The broader undertone remained measured, as investors refrained from aggressive positioning amid the absence of strong domestic triggers and mixed global cues.
Sectoral participation was selective throughout the session. Banking and select large-cap stocks provided stability, while the IT sector showed early signs of recovery through selective buying and short covering following recent weakness. However, the rebound in IT remained gradual rather than broad-based, indicating an improvement in sentiment but not yet confirming a sustained trend reversal.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is positive following Wednesday’s close. The Prabhudas Lilladher expert said the Nifty 50 index is finding resistance at 25,656. Breaking above this 50-DEMA resistance would mean a near-term target of 26,000 for the 50-stock index. Support for the key benchmark index is at the 200-DEMA, which is at 25,340.
Speaking on the outlook for the Nifty 50 today, Vaishali Parekh said that after a positive opening above 25,500, Nifty rallied towards the 50 EMA at 25,656 and slipped gradually as the day progressed, ending with marginal positive gains near 25,480, with the overall trend remaining positive.
“As mentioned earlier, the important 200 DMA zone at the 25340 level would be the important and crucial support zone, which needs to be sustained, and on the upside, once a decisive breach above the 50 EMA level of 25656 is confirmed, one can expect a near-term target of the 26,000 level in the coming days,” Vaishali Parekh added.
On the outlook for the Bank Nifty index, Parekh said it has been trading within a narrow range and is in a consolidation near the 61,000 zone, with the overall bias remaining positive, anticipating further positive developments.
“As mentioned earlier, the index would have the important and crucial support positioned near the 60,500 level, which needs to be sustained as of now, and at the same time, on the upside, it would need to breach above the resistance zone of the 61,600 level, and thereafter, expect fresh higher targets of the 62,300 and 63,000 levels in the coming days,” Parekh said.
Vaishali Parekh’s stock recommendations for today
Regarding stocks to buy today, Vaishali Parekh recommended three stocks to buy today — Zen Technologies, Nelcast, and Cipla.
1] Zen Technologies: Buy at ₹1330, Target ₹1360, Stop Loss ₹1310.
The stock is bouncing back from the oversold zone. So, one can buy the stock, as the risk-reward ratio favours the bulls.
2] Nelcast: Buy at ₹116, Target ₹123, Stop Loss ₹113.
The stock is in momentum after a consolidation, favouring a sharp rebound for bulls.
3] Cipla: Buy at ₹1340, Target ₹1370, Stop Loss ₹1320.
The stock is bouncing back from the oversold zone. The technical chart pattern suggests a further uptrend, which qualifies this stock for intraday trading, favouring bulls.
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.
