Buy or sell stocks: Following soft global market sentiments, the Indian stock market is expected to open on a cautious note on Tuesday. Major equity indices of the US stock market closed lower amid a risk-off sentiment ahead of key economic data releases, including non-farm payrolls, retail sales, and inflation figures, which could influence the future course of monetary policy. Asian markets also opened lower, with cautious traders paring positions ahead of the Bank of Japan’s crucial monetary policy decision later this week.
On the domestic front, persistent FII outflows and continued pressure on the rupee near record lows remain key near-term headwinds. However, strong participation from domestic institutional investors and retail flows continues to provide a cushion against deeper downside risks. In this backdrop, markets are expected to respect key technical levels rather than exhibit aggressive trending behaviour.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious to positive as the Nifty 50 index bounced back after testing 25,900 levels and regained the psychological 26,000 levels. The key benchmark index may try to test its previous peak zone of 26,350. The secondary market would continue to remain an ideal buy-on-dip market until the 50-stock index remains above the 50-DEMA support, placed at 25,750.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index opened on a weak note with a gap down but witnessed a significant and steady recovery from the low made near the 25,900 zone to improve the sentiment and maintained the bias overall intact with an optimistic approach sustained. The index can carry on with the positive move to retest the previous peak zone of 26,325 level once again in the coming days, with the important 50-DEMA level at 25,750 zone positioned as the important support level for the index, which needs to be sustained.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index, after opening near the low at 59,000 zone in the morning session, once again pulled back to end the session near 59,500 zone overall gripped between a narrow range as we have been witnessing since the last 2 weeks. The index would need a decisive move past the resistance barrier of the range at 59,700 level to establish conviction and thereafter, expect for further upward move for targets of 61,300 and 63,000 levels in the coming days, as mentioned earlier, having 58,800 level maintained as the important support level.”
Parekh stated that immediate support for the Nifty 50 index is located at 25,900, while the resistance level is at 26,200. The Bank Nifty is expected to have a daily range of 59,000 to 60,000.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks for intraday trading on Tuesday: RCF, Shriram Finance, and Max Healthcare.
1] RCF: Buy at ₹140, Target ₹150, Stop Loss ₹136;
2] Shriram Finance: Buy at ₹851, Target ₹880, Stop Loss ₹830; and
3] Max Healthcare: Buy at ₹1083, Target ₹1110, Stop Loss ₹1060.
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.
