Buy or sell stocks: On Monday, the Indian stock market registered a relief rally on broad-based buying. The Nifty 50 index went up 157 points and closed at 24,722, the BSE Sensex surged 418 points and finished at 81,018, while the Bank Nifty index ended marginally higher at 55,619. Hero Motocorp, Tata Steel and Adani Ports led the charge among the Nifty’s top performers. Conversely, it was a particularly tough session for Power Grid Corporation of India, HDFC Bank, and ONGC, which ended as the major losers within the Nifty pack. Trading volumes on the NSE cash market were lower by 12% compared to Friday, the lowest since 07 July.
The widespread buying interest across sectors was a clear sign of the market’s improved sentiment. Barring Nifty FMCG, which ended marginally in the red, all other sectoral indices closed the day in the green. The gains were robust in Nifty Metal, Realty, Auto, and IT, which all ended as major gainers, indicating a broad-based return of confidence among investors.
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 has registered a strong rebound from a lower support range. However, the Prabhudas Lilladher expert maintained that for further improvement in Dalal Street’s mood, the key benchmark index needs to break above 50-DEMA resistance placed at 24,900.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index witnessed a pullback and managed to close above the 24700 zone, with the broader markets showing some improvement. Further improvement can be anticipated in the coming sessions. As mentioned, the index must decisively breach above the 50 EMA level of 24906 to establish conviction and anticipate further rise in the coming days.”
“The Bank Nifty index, overall, remained sluggish, hovering near the 55,500 zone, and has been moving within a tight range for some time, resisting near the 50-DEMA level of 56,072 and having crucial support near the 55,000 level. As mentioned earlier, the index needs to move past the important hurdle of the 56,100 level to establish conviction and confirm a directional move further ahead,” said Parekh.
Parekh said that immediate support for the Nifty 50 index is 24,550, while the resistance is 24,900. The Bank Nifty would have the daily range of 55,000 to 56,200.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: Bank of Maharashtra, SJVN, and Mankind Pharma.
1] Bank of Maharashtra: Buy at ₹55, Target ₹60, Stop Loss ₹52;
2] SJVN: Buy at ₹93, Target ₹99, Stop Loss ₹90; and
3] Mankind Pharma: Buy at ₹2631, Target ₹2700, Stop Loss ₹2590.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
