Buy or sell stocks: In a stark contrast to the previous session, the Indian stock market witnessed sharp selling in the last hour of trade during the Wednesday session. The Nifty 50 index went off 46 points and closed at 25,476, the BSE Sensex ended 176 points lower at 83,536, while the Bank Nifty index finished 42 points down at 57,213. Shriram Finance, Bajaj Finance, and Coal India were leading the charge among the top performers on the Nifty, showcasing individual strength despite the broader market’s dip. Conversely, HCL Tech, Hindalco, and Tata Steel bore the brunt of the selling pressure, concluding the session as major losers. Volumes on the NSE cash market were higher by 5% compared to yesterday, indicating increased activity during this reversal.
The Nifty Midcap 100 Index continued its profit-booking phase for the fourth consecutive day, ending with minor losses of 0.13%. On the other hand, the Nifty Smallcap 100 Index bucked the trend by rising 0.59%. Despite the benchmark’s fall, market breadth ended positive, showing signs of improvement, with advancing stocks slightly outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.07. Amongst the sectoral indices, Nifty FMCG, Consumer Durables, and Auto were the major gainers, demonstrating resilience in a dull market for the benchmark. Conversely, Nifty Realty, Metal, and IT were the major losers, seeing significant profit booking.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment will remain positive until the Nifty 50 index is above 25,300 to 25,250 levels. The Prabhudas Lilladher expert said the key benchmark index is facing a hurdle at 25,550, and the 50-stock index may soon touch 25,700 and 26,200 once the Nifty 50 index breaks above 25,550 on a closing basis.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, “The Nifty 50 index witnessed a volatile session resisting near the 25,550 zone and slipping down in the final hours of the trading session to end almost on a flat note near the 25,470 zone with bias and sentiment maintained intact. With the onset of result season, we can expect volatility to rise further with the index having the important support positioned near the 25,250-25,300 zone, which needs to be sustained. On the upside, a decisive breach above the 25,650 zone shall trigger a fresh upward move with higher targets of 25,700 and 26,200 levels in the coming days.”
“The Bank Nifty index witnessed almost a sluggish session with narrow rangebound movement once again finding resistance near the 57,300 zone and closed on a flat note near the 57,200 level. The index has maintained a strong overall undertone. It can be expected to rise further once a decisive breach above the resistance level of 57,600 is confirmed, thereafter, expecting fresh targets of 58,500 and 60,000 levels in the coming days. As mentioned earlier, the index continues to have the 56,000 zone as the important and crucial support, which needs to be sustained as of now,” said Parekh.
Parekh said that today, the Nifty’s immediate support is at 25,350, while the resistance is at 25,700. The Bank Nifty would have a daily range of 56,800-58,000.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three intraday stocks to buy-or-sell: Balmer Lawrie and Company, Vascon Engineers, and Ramkrishna Forgings.
1] Balmer Lawrie and Company: Buy at ₹219, Target ₹240, Stop Loss ₹213;
2] Vascon Engineers: Buy at ₹53, Target ₹58, Stop Loss ₹49; and
3] Ramkrishna Forgings: Buy at ₹663, Target ₹710, Stop Loss ₹645.
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.
