Vaishali Parekh’s top 3 stocks to buy: In the truncated trading week, the benchmark indices corrected sharply. The Nifty 50 index ended down by 3.10%, while the Sensex fell nearly 2000 points. Among the sectors, almost all major sectoral indices saw profit-booking at higher levels. The Consumer and Auto indices lost the most: Consumer stocks corrected 6.15%, and Auto stocks fell 5.85%.
The market consistently faced selling pressure at higher levels during the week. On the weekly charts, it formed a long bearish candle. On the intraday charts, it continued to make lower highs and lower lows, indicating a largely negative trend.
Vaishali Parekh on stock market outlook
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market bias has weakened after the crash across all four sessions last week. The Prabhudas Lilladher expert said the Nifty 50 index has crucial support placed at 21,800. Breaking below this support decisively may further intensify selling pressure.
Speaking on the outlook for the Nifty 50 index, Vaishali Parekh said, the 50-stock index witnessed another day of free fall with heavy selling pressure to almost touch the previous low made near the 22,180 zone, and finally, amid some volatility, managed to close just above the 22,400 zone with the overall bias and sentiment shattered as of now.
“The Nifty 50 index would have the crucial support near the 22200 zone and thereafter, has the major and important level near the 21800 zone, which needs to be sustained, failing which the overall trend would turn weak and can invite further intensified selling pressure. Some revival cannot be ruled out, but needs to sustain above the 23000 zone,” said Parekh.
Vaishali Parekh recommends three stocks to buy
Regarding stocks to buy on Monday, Vaishali Parekh recommended these three shares: CG Power, Graphite India, and Bectors Food.
1] CG Power: Buy at ₹879 | Target ₹930 | Stop Loss ₹860;
2] Graphite India: Buy at ₹786 | Target ₹825 | Stop Loss ₹770; and
3] Bectors Food: Buy at ₹213 | Target ₹227 | Stop Loss ₹208.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
