Buy or sell stocks: The key benchmark indices of the Indian stock market extended their bullish trajectory for the fifth consecutive session on Wednesday, August 20, buoyed by sustained investor optimism surrounding the Centre’s anticipated rationalisation of the Goods and Services Tax (GST) structure. The Nifty opened on a muted note but gathered upward momentum in the latter half, registering an intraday high of 25,088 before settling at 25,050.55, marking a gain of 69 points or 0.28%. Market sentiment was further bolstered by expectations of GST reform announcements ahead of Diwali, alongside a thaw in India-China geopolitical tensions—both acting as key catalysts for the ongoing relief rally.
On the sectoral front, performance was mixed. The Nifty IT outperformed with a robust uptick of 2.69%, followed by Nifty FMCG (+1.39%) and Nifty Realty (+1.06%). Other sectors like Nifty Metal, Energy, Infra, and Auto closed with marginal gains, reflecting a broad-based yet selective buying interest. Conversely, profit booking weighed on Nifty Media, the worst performer, declining 1.98%, while Nifty Pharma and PSU Bank indices shed 0.44% and 0.27% respectively. The broader markets mirrored the benchmark’s resilience, with the Nifty Midcap 100 and Nifty Small Cap 100 closing higher by 0.46% and 0.3% respectively, indicating continued risk appetite across market capitalisations.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market bias is positive. The Nifty 50 index reclaimed the psychological 25,000 level after sustaining above 50-DEMA support placed at 24,815. The Prabhudas Lilladher expert said the key benchmark index faces hurdles at the 25,250 to 25,300 levels. A fresh bull trend on Dalal Street can be expected once the 50-stock index breaks above this hurdle on a closing basis.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index continues to gain strength, sustaining above the important 50-DEMA level, which is positioned near the 24,850-zone, maintained as the strong near-term support, and currently closing above the 25,000 level has further improved bias and sentiment overall. With the broader markets supporting the benchmark index, on the upside, Nifty must exceed the important hurdle of the 25,250 to 25,300 zone, establishing further stability and conviction for further upward movement in the coming days.”
On the outlook of the Bank Nifty today, Parekh said, “The Bank Nifty index continues to remain sluggish with no clear directional move, hovering near the important 50-DEMA zone at 55,800 level. A decisive breach above the 56,200 zone would improve the bias, and thereafter, expect further upward movement in the coming days. On the downside, the 55,000 level would remain the important support zone that needs to be sustained to maintain the overall bias intact.”
Parekh said that the immediate support for the Nifty 50 index is at 24,900, while the resistance is at 25,300. The Bank Nifty would have a daily range of 55,300 to 56,200.
Vaishali Parekh’s stock recommendations today
Regarding intraday stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: HCL Technologies, Mazagon Dock Shipbuilders, and Samvardhana Motherson.
1] HCL Technologies: Buy at ₹1494, Target ₹1550, Stop Loss ₹1470;
2] Mazagon Dock Shipbuilders: Buy at ₹2770, Target ₹2900, Stop Loss ₹2720; and
3] Samvardhana Motherson: Buy at ₹97, Target ₹105, Stop Loss ₹95.
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.
