Buy or sell stocks: Following reports of increasing COVID-19 cases in Southeast Asian countries, the Indian stock market witnessed a sharp correction on Tuesday. The Nifty 50 index finished 261 points lower at 24,683. The BSE Sensex crashed 872 points and closed at 81,186. The Bank Nifty index ended 543 points lower at 54,877. Nifty Midcap100 and Smallcap100 indices closed weak, forming bearish “Engulfing” candlestick patterns. Midcap 100 fell 1.62% while Smallcap 100 dropped 0.94%. Market breadth turned negative after six consecutive positive days, with the BSE advance-decline ratio at 0.58.
All sectoral indices closed in red, with Auto, Healthcare, Media, and Pharma experiencing the heaviest losses. Auto stocks were particularly weak, with three of the top four Nifty losers from this sector, amid valuation concerns and an uncertain demand outlook.
Stock market today
Vaishali Parekh, Vice President—Technical Research at Prabhudas Lilladher, believes the Indian stock market bias has turned cautious to positive after slipping below 24,800 on a closing basis. The Prabhudas Lilladher expert said the Nifty today has crucial support at 24,500. On breaching below this support, the 50-stock index may try to come close to 200-DEMA support at 24,050 levels.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, “The Nifty 50 index cooling off from the peak zone slipped down below the 24800 zone with profit booking witnessed and has the next important support near the 24500 level with overall trend maintained positive as of now. As mentioned earlier, the crucial and major support zone lies near the 200-period MA at the 24050 level, which needs to be sustained, and at the same time, on the upper side, a decisive breach above the 25000 zone shall trigger a fresh upward move in the coming days.”
“The Bank Nifty index once again failed to sustain above the 55700 zone and with profit booking slipped down to end near the 54900 level with the crucial support positioned near the 54000 level, which needs to be sustained to maintain the overall bias intact as mentioned earlier. A decisive breach above the 55800 zone is much needed to trigger a breakout, and thereafter expect a fresh further rise in the coming days,” said Parekh.
Parekh went on to add that today, support for the Nifty is at 24500, while resistance is at 24,900. The Bank Nifty would have a daily range of 54,400 to 55,500.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy or sell stocks: Filatex India, NIIT Learning Systems, and Carborundum Universal.
1] Filatex India: Buy around ₹49, Target ₹55, Stop Loss ₹47;
2] NIIT Learning Systems: Buy at ₹356, Target ₹380, Stop Loss ₹340; and
3] Carborundum Universal: Buy at ₹1014, Target ₹1070, Stop Loss ₹980.
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 taking any investment decisions.
