Buy or sell stocks: Dragged by a decline in heavyweight banking and financial sector stocks as RBI’s rate cut failed to lift investor sentiment on Dalal Street. All three frontline indices of the Indian stock market ended lower on Wednesday. The Nifty 50 index lost 136 points and closed at 22,399. The BSE Sensex went off 379 points and closed at 73,847, while the Bank Nifty index finished 270 points lower at 50,240. Larsen & Toubro share price contributed the most to the index decline, decreasing 3.4%. Wipro shares had the most significant drop, falling 4.3%.
Both the Midcap and Small cap indices, along with the Benchmark Indices, witnessed profit booking. The Nifty Midcap 100 and Smallcap 100 fell by 0.51% and 0.86%, respectively. Declining shares outnumbered the advancing ones, as the advance-decline ratio on the BSE stood at 0.67.
Stock market today
Vaishali Parekh, Vice President—Technical Research at Prabhudas Lilladher, believes the Indian stock market bias is cautious as the Nifty 50 index has slipped below 22,500 after a relief rally on Tuesday. The Prabhudas Lilladher expert maintained that the Nifty 50 index is in the 22,200 to 22,700 range. A bullish or bearish trend can be assumed on the breakage of either side of the range.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, “The Nifty 50 index, after opening with a gap down, remained sluggish with a narrow rangebound movement to end near the 22,400 zone with bias and sentiment precariously placed and further ahead, would need to move past the 22,700 level to establish some conviction. The zone near the 22,200 would be the crucial support level below which the index would once again get into the weaker zone, opening the fresh downward targets.”
“The Bank Nifty index, amid some volatility, sustained near the 49,900 zone and witnessed a gradual pullback to close near the 50,250, with the overall bias maintained with a cautious approach. The index needs to move past the important resistance zone 50,700 to overcome the weakness and, thereafter, expect further rise in the coming sessions,” said Parekh.
Parekh said that support for Nifty today is at 22,200, while the resistance is at 22,600. The Bank Nifty would have a daily range of 49,700 to 51,000.
Vaishali Parekh today: Three recommended stocks to buy
Regarding stocks to buy today, Vaishali Parekh recommended buying these three buy or sell stocks: Oil India Ltd, Kalyan Jewellers India, and NHPC.
1] Oil India Ltd: Buy at ₹349, target ₹370, stop loss ₹338;
2] Kalyan Jewellers India: Buy at ₹494, target ₹525, stop loss ₹485; and
3] NHPC: Buy at ₹84, target ₹90, stop loss ₹81.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
