Buy or sell stocks: After a flat start on Wednesday, buying lifted the Nifty 50 index to an intraday high of 26,235 in the first hour. However, momentum shifted after 10:30 AM as a correction set in, pulling the index down more than 100 points from its intraday highs. The Nifty 50 finally ended the session with a loss of 35 points to close at 26,142. The NSE cash market turnover declined by 3% compared to the previous day. Baring Nifty Media, Realty, and Metal all ended in the red. Among them, oil and gas, Pharma, and IT fell the most.
Trent, Shriram Finance and Apollo Hospital emerged as the Nifty’s top outperformers. On the other hand, Indigo, Adani Enterprise, and Dr Reddy experienced selling pressure and ended as major laggards. The broader market presented a mixed picture as Nifty Midcap 100 slipped 0.60%, while the Nifty Small-cap index bucked the trend with a 0.3% gain. Market breadth turned weak after three days, reflected in a BSE advance-decline ratio of 0.79.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is flat to positive as the Nifty 50 index is facing a hurdle at 26,230. The Prabhudas Lilladher expert stated that the 50-stock index, which currently indicates a flat pattern on the daily chart, would continue to have crucial support near the 50-EMA level at the 25,800 zone.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index, once again, remained subdued after the positive opening session, finding resistance near the 26,230 zone, thereafter, witnessing a gradual slide to end on a flat note near the 26,150 level with bias remaining intact. The index, indicating a flat pattern on the daily chart, would continue to have the crucial support near the 50-DEMA level at the 25,800 zone. On the upside, a decisive close above the 26250 zone shall trigger the next upward move with a near-term target expected around the long-term trendline zone at the 25,450 level.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index continues to move within a range, finding tough resistance near the 59,500 zone and fizzling out during the intraday session after the positive opening to end in the red just below the 59,200 level with overall bias maintained positive. The index, as said earlier, is overall having a consolidation period with the support maintained strong near the 58,700 zone and on the upside, a decisive breach above the 59,800 level is necessary to trigger a fresh upward move in the coming days.”
Parekh stated that immediate support for the Nifty 50 index is located at 26,000, while the resistance level is at 26,300. The Bank Nifty is expected to have a daily range of 58,800 to 59,600.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks for Intraday trading: Jayaswal Neco Industries, Som Distilleries and Breweries, and Gujarat Ambuja Exports.
1] Jayaswal Neco Industries: Buy at ₹80.70, Target ₹86, Stop Loss ₹78.50.
The stock has recently gained momentum from the critical 50-EMA level at ₹71.60, improving the bias and anticipating further rise, with the RSI also improving, indicating a continued positive move ahead. We recommend buying the stock with an upside target of ₹86, while maintaining a stop-loss of ₹78.50.
2] Som Distilleries and Breweries: Buy at ₹110.35, Target ₹117, Stop Loss ₹108.
The stock, having witnessed a decent erosion, has taken support near the ₹zone and indicated a positive reversal, currently showing a positive bullish candle formation to improve the bias and anticipate further rise. With the RSI recovering from the oversold zone, signalling a buy, and the chart looking attractive, we suggest buying the stock for an upside target of ₹117, with a stop loss of ₹108.
3] Gujarat Ambuja Exports: Buy at ₹125.25, Target ₹134, Stop Loss ₹123.
The stock has recovered significantly from the bottom made near the ₹102 zone. It has gained strength with a series of higher bottom formation patterns visible on the daily chart to anticipate further upward moves in the coming sessions. The RSI is well-positioned, with strength indicated, and can continue the positive move further ahead. We suggest buying the stock with a target of ₹134, while maintaining a stop loss of ₹123.
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.
