Buy or sell stocks: In the last session of the previous week, the Indian stock market witnessed sharp selling. Among the key benchmark indices, Nifty 50 and BSE Sensex lost over half a per cent, while the Bank Nifty index lost close to one per cent. Wipro, Bajaj Finance, and Tata Steel showcased strength, emerging as the top performers on the Nifty. Conversely, Axis Bank, Shriram Finance and BEL concluded the session as major losers. Trading volumes on the NSE cash market were slightly lower by 2% compared to yesterday.
The broader market also experienced profit booking, mirroring the benchmark indices. The Nifty Midcap 100 fell by 0.70%, while the Nifty Smallcap 100 declined by 0.82%. Market breadth remained negative, with declining stocks outnumbering advancing ones on the BSE, as indicated by an advance-decline ratio of 0.70. Amongst the sectoral indices, Media, Metal, and IT managed to end up as major gainers, showcasing some resilience. However, Nifty Private banks, Consumer durables, and Financial services faced the steepest declines, contributing significantly to the overall market fall.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has weakened as the Nifty 50 index slipped below 25,000 and finished close to its 50-DEMA support of 24,900. The Prabhudas Lilladher expert said the key benchmark index may try to test 24,650 levels if the 50-stock index breaches below 24,900 on a closing basis.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, “The Nifty 50 index once again lost control and indicating a lower top formation on the daily chart slipped below the important 25000 zone to slightly weaken the bias and has arrived near the crucial support zone area of the 50EMA level at 24900 which needs to be sustained to maintain the overall trend intact. Also, the base of the ascending channel pattern on the daily chart lies near the 24900 zone, which is at stake, and the much-awaited results of the heavyweight giants – HDFC Bank and ICICI Bank would be released, which would decide the next course of the market. For the bias to improve, the index must decisively move past the 25250 zone.”
“The Bank Nifty index succumbed to heavy profit booking post the weak result outcome of Axis Bank, which dragged the index to breach below the near-term support of the 56600 zone and has slightly weakened the bias with the next major and crucial support positioned near the 50EMA zone at the 55900 level, which needs to be sustained. On the upside, as mentioned earlier, it would need to breach above the resistance zone of 57600 level and expect fresh higher targets of 58500 and 60000 levels in the coming days,” said Parekh.
Parekh said that the immediate support for the Nifty 50 index is at 24,800, while the resistance is at 25,200. The Bank Nifty would have a daily range of 55,500 to 57,000.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: SAIL, Archean Chemical Industries, and Himatsingka Seide.
1] Himatsingka Seide: Buy at ₹154.80, Target ₹166, Stop Loss ₹151;
2] SAIL: Buy at ₹136, Target ₹142, Stop Loss ₹133; and
3] Archean Chemical Industries: Buy at ₹698, Target ₹730, Stop Loss ₹683.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
