Buy or sell stocks: The key benchmark indices of the Indian stock market ended lower in a volatile session on 2 September, marking the first Tuesday expiry under the new weekly derivatives settlement cycle. The Nifty 50 closed marginally lower. The Sensex retreated sharply, slipping over 700 points from its intraday peak, as profit-taking in heavyweight banking and financial counters exerted downward pressure.
Broader markets outperformed, with the Nifty Midcap and Smallcap indices ending in the green, reflecting continued rotational interest. Sectoral performance was mixed. Defensive buying in FMCG stocks led the Nifty FMCG index to close with a 1.1% gain, while Nifty Media and Nifty Energy advanced 0.99% each. The Nifty Metal index added 0.85%, supported by firm global commodity cues. Realty, PSU Banks, and Infra pockets also clocked modest gains amid stock-specific action. Conversely, profit-booking was evident in the Auto, private bank, and Pharma spaces, with the indices shedding 0.7% and 0.2%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious to positive. The Nifty 50 index failed to capitalise on the positive opening and closed around 24,600 after the profit booking triggered at the 50-DEMA resistance placed at 24,800 levels. However, bulls may remain positive as the key benchmark index exceeds the 24,400 support.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index, after failing to capitalise on the positive opening session, was subjected to profit booking, resisting near the 50-DEMA level of 24,800 to cool off in the final hours to end the session near 24,600 with bias and sentiment maintained with a cautious approach. The index is currently precariously placed, and if it breaches below the 24,400 zone, then a further slide can be expected, with the 200-DEMA level of 24,000 as the next important zone to be watched for. On the upside, we continue to maintain our view; only a decisive move past the near-term hurdle of the 50-DEMA level of 24,800 shall confirm an improvement in bias, and we expect a further rise.”
On the outlook of the Bank Nifty today, Parekh said, “The Bank Nifty index, with profit booking witnessed, slipped down near the 53500 zone to weaken the bias. Further ahead, a decisive breach below the important support of the 200 DMA level of 52900 shall trigger fresh selling pressure, with the next major and crucial support positioned near the 51700 zone. For the bias to improve, the index needs to move past the resistance hurdle of the 54300 zone to anticipate a further rise in the coming days.”
Parekh said that the Nifty 50 index’s immediate support is at 24,400, while the resistance is at 24,800. The Bank Nifty’s daily range is 53,000 to 54,300.
Vaishali Parekh’s stock recommendations today
Regarding intraday stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: RBL Bank, Filatex India, and Diamond Power Infrastructure.
1] RBL Bank: Buy at ₹268, Target ₹280, Stop Loss ₹262;
2] Filatex India: Buy at ₹53, Target ₹58, Stop Loss ₹50; and
3] Diamond Power Infrastructure: Buy at ₹143, Target ₹150, Stop Loss 138.
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.
