Buy or sell stocks: Global market sentiment strengthened overnight after the 25 bps US Fed rate cut to 3.50% to 3.75%, marking the third consecutive reduction in this cycle. But the tone of the policy message remained cautious. The FOMC was split, with two members favouring no cut and one arguing for a deeper 50 bps move, underscoring the uncertainty around the path ahead. Inflation remains sticky at 2.8%, unemployment has climbed to 4.4%, and the Fed is now focused on supporting growth without risking another inflation rebound. Markets initially welcomed the move, with the Dow rallying over 1% and the S&P 500 up 0.68%, while the VIX cooled sharply. Asian markets opened firm, supported by the US rebound and improving manufacturing data from China. European markets, however, remained mixed, as the DAX and CAC traded mildly lower, while the FTSE managed small gains. Commodities stayed stable with crude around $58, while gold rose 1.1% and silver climbed 2.77%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has turned cautious as the Nifty 50 index finished close to the 50-DEMA support placed at 25,730. Dalal Street sentiment may worsen if the 50-stock index slips below this crucial support on a closing basis. On the upper side, the bull’s conviction will gain strength once the key index breaks above the 26,000 levels.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index, once again witnessing a weak candle, has slipped down with profit booking, dragging the index, having arrived near the crucial and important support near the 50-DEMA level at 25,730 zone, which needs to be sustained to maintain the overall bias intact. The index is precariously placed and would need a revival; failing which, the trend would shift into a cautious mode, with the next major support positioned near the 25,300 zone. On the upside, a decisive breach above the 26,000 zone is necessary to sustain the positive trend and expect further gains in the coming days.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index witnessed a weak session with profit booking taking the index to slide once again towards the important and crucial support zone at 58,800, below which the bias would turn slightly weak. On the upside, the index would need a major move past the 60,000 zone to establish conviction and thereafter, expect a further upward move for targets of 61,300 and 63,000 levels in the coming days.”
She said that immediate support for the Nifty 50 index is placed at 25,600, while the resistance is seen at 26,000. The Bank Nifty is expected to have a daily range of 58,500 to 59,500.
Vaishali Parekh’s stock recommendations today
Regarding intraday stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks: Hindustan Zinc, Vedanta, and HEG.
1] Hindustan Zinc: Buy at ₹512, Target ₹535, Stop Loss ₹500;
2] Vedanta: Buy at ₹524, Target ₹545, Stop Loss ₹508; and
3] HEG: Buy at ₹540, Target ₹565, Stop Loss ₹525.
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.
