Buy or sell stocks: The downside momentum continued in the Indian stock market for the fourth consecutive session on Monday. The Nifty 50 index went off 67 points and closed at 25,082, the BSE Sensex ended 247 points lower at 82,253, while the Bank Nifty index finished marginally higher at 56,765.
Meanwhile, the broader markets witnessed buying interest with Nifty Midcap100 and Smallcap100 indices rising by 0.7% and 1.0% each. Amongst sectors, Nifty Pharma gained 0.8% amid expectations of a favourable outcome in the US-India trade deal. On the other hand, Nifty IT lost 1.1% as TCS’s weak Q1 earnings and cautious guidance sparked a broad sectoral sell-off.
Stock market today
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has weakened as the Nifty 50 index has slipped further down towards its 50-DEMA support of 24,900. The Prabhudas Lilladher expert added that if it breaches below this crucial support, the key benchmark index may try to touch 24,650 levels.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index amid profit booking continue to slip further with bias gradually turning weak and is nearing the important 50-DEMA zone at 24,900, which is also the base of the ascending channel pattern on the daily chart which acts as an important and crucial support area which needs to be sustained as of now, to maintain the overall trend intact. We anticipate volatility to continue with the ongoing result season and, on the upside, as mentioned earlier, a decisive breach above the 25,650 zone is necessary to trigger fresh upward momentum in the coming days.”
“The Bank Nifty index has been moving within a narrow range and has consolidated near the 56,800 zone with a positive bias, anticipating further positive developments. As mentioned earlier, the index would have the important and crucial support positioned near the 56,000 level which needs to be sustained as of now and at the same time, on the upside, it would need to breach above the resistance zone of 57,600 level and thereafter, expect for fresh higher targets of 58,500 and 60,000 levels in the coming days,” said Parekh.
Parekh said that the immediate support for the Nifty 50 index is at 24,900, while the resistance is at 25,300. The Bank Nifty would have a daily range of 56,200-57,300.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended these three buy-or-sell stocks: Allcargo Terminals, Fortis Healthcare, and Piramal Pharma.
1] Allcargo Terminals: Buy at ₹29.90, Target ₹33, Stop Loss ₹29;
2] Fortis Healthcare: Buy at ₹786, Target ₹810, Stop Loss ₹770; and
3] Piramal Pharma: Buy at ₹208, Target ₹220, Stop Loss ₹200.
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.
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