Buy or sell stocks: The key benchmark indices of the Indian stock market commenced the holiday-shortened trading week on a buoyant note, with both the Nifty 50 and Sensex registering modest gains on Monday, August 25. A dovish tilt in commentary from U.S. Federal Reserve Chair Jerome Powell during his recent address bolstered expectations of a potential rate cut, catalysing a wave of risk-on sentiment across global equities. The Nifty 50 index opened on a firm footing, reflecting positive global cues, and traded within a narrow consolidation band for most of the session. It ultimately settled at 24,967.75, marking an increment of 98 points or 0.39% on a closing basis. The Sensex followed suit, exhibiting similar resilience and mirroring the uptrend.
The broader market indices, however, displayed a more subdued undertone, with the Nifty Midcap 100 inching up by 0.12% and the Nifty Small Cap 100 closed on a flat note, indicating a mixed undertone in the secondary space. Sectorally, buying interest was notably pronounced in Information Technology stocks, with the Nifty IT index surging 2.4%, buoyed by a weaker dollar and improved global risk appetite. The Realty pack also garnered traction, adding 0.7%, while the Metal index advanced 0.65%, supported by a rebound in global commodity prices.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is positive. The Nifty 50 index is sustaining above the 50-DEMA support placed at 24,850. The key benchmark index is facing resistance at the 25,250 to 25,300 levels. A bullish or bearish trend can be assumed on the breakage of either side of this range.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index formed an inside bar pattern on the daily chart with a close near the 25,000 zone after opening on a positive note in the morning sessions, with hopes of positive developments awaited in the coming sessions. The index has managed to sustain above the important 50-DEMA at 24,850 zone, which is the near-term support as of now and on the upside, would need a decisive breach above the 25,250 to 25,300 zone to establish conviction and stability for further rise, as mentioned earlier.”
“The Bank Nifty index continues to remain sluggish with narrow movement visible in recent times and would need to sustain the important support zone of 55,000 level and to improve the bias, would need to decisively break above the 56,000 zone to gather strength and thereafter, expect further rise in the coming days. The heavyweight banking stocks are all gripped between a tight range and desperately would need a fresh move to establish conviction and stability,” Parekh added.
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 index would have a daily range of 54,700 to 55,700.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: Gufic BioSciences, IRB Infrastructure, and Advanced Enzyme Technologies.
1] Gufic BioSciences: Buy at ₹375, Target ₹400, Stop Loss ₹365;
2] IRB Infrastructure: Buy at ₹45, Target ₹48, Stop Loss ₹43; and
3] Advanced Enzyme Technologies: Buy at ₹310, Target ₹330, Stop Loss ₹300.
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.
