Buy or sell stocks: The key benchmark indices of the Indian stock market ended Monday’s session on a weak note amid intensified sales pressure, driven by persistent FII outflows and negative cues from Asian peers. The Nifty 50 index opened flat and remained range-bound with heightened intraday volatility during the first half. However, intensified selling in the latter half of the session dragged the 50-stock index sharply lower, culminating in a close near the intraday low at 24,680.90, marking a decline of 156.10 points or 0.63%. The bearish sentiment remained intact on the broader market front, as both the Nifty Midcap 100 and Nifty Smallcap 100 indices extended their losing streak, ending lower by 0.84% and 1.26%, respectively, reflecting sustained risk aversion across market capitalisations.
Sectorally, the market breadth was broadly negative, with the pharma index being the sole outperformer in an otherwise weak landscape. Realty stocks bore the brunt, nosediving 4%, followed by the media pack, which corrected 2.7%. Capital goods, metals, telecom, PSU banks, and private banking counters witnessed broad-based pressure, slipping between 1% and 1.5%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market mood has further weakened as the Nifty 50 index has slipped below 24,700. Now, the key benchmark index has crucial support at 24,500 and is facing resistance at 24,900.
Speaking on the outlook of the Indian stock market, Vaishali Parekh said, “The Nifty 50 index, after witnessing some positive moves in the morning session, once again gave in and continued with the slide, extending the losses moving below the 24,700 zone with bias getting weak and the sentiment maintained with a cautious approach as of now. The index has crucial support near the 24,500 level, which needs to be sustained; failing this, the overall trend would turn weak. On the upside, a decisive move past the important zone at the 24,900 level would be necessary to improve the bias and expect a fresh upward move.”
“The Bank Nifty, amid some volatile sessions in the first half, further lost steam and slipped down to arrive near the important support zone at the 56,000 level, with bias and sentiment getting into a cautious mode. The index would need to sustain the crucial support zone near the 50-DEMA level at the 56,000 zone, and a revival shall once again bring hopes for further upward move. In contrast, a decisive breach shall weaken the trend and can trigger fresh downward movement with the next major support positioned near the 54,400 zone,” said Parekh.
Parekh said that immediate support for the Nifty 50 index is 24,500, while the resistance is 24,900. The Bank Nifty would have the daily range of 55,500 to 56,600.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: Piramal Enterprises Ltd (PEL), IPL, and GMR Airports.
1] PEL: Buy at ₹1307, Target ₹1350, Stop Loss ₹1270;
2] UPL: Buy at ₹733, Target ₹760, Stop Loss ₹710; and
3] GMR Airports: Buy at ₹89.70, Target ₹95, Stop Loss ₹88.
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.
