Stock Market Overview
India’s benchmark stock market indices, the Sensex and Nifty 50, have witnessed a notable decline, closing lower for the sixth consecutive trading session. This downward trend is primarily driven by substantial selloffs from foreign portfolio investors (FPIs), leading to a broad-based market selloff. As a result, the Nifty 50 index settled at 24,795.75 points, reflecting a decrease of 0.87% from the previous close of 25,014.60 points.
Market Performance
Similarly, the BSE Sensex also saw a dip, closing down by 0.78% at 81,050 points, compared to its previous close of 81,688.45 points. This ongoing bearish sentiment has raised concerns among traders and investors, as the market struggles to recover from recent losses.
Technical Analysis by Vaishali Parekh
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, has observed that the Nifty has fallen nearly 1,500 points from its peak of 26,277 points. The index has now dropped below the crucial 25,000-level, indicating a weakening market bias and the potential for further declines. Parekh also notes important support at 24,600 points and resistance at 25,000 points.
Insights on Bank Nifty
In terms of the Bank Nifty, Parekh highlights that this index has also experienced a significant decline of about 4,000 points from its peak. Currently, it is positioned below critical averages such as the 50 EMA and 100 period MA, signaling a weak bias. The next major support is identified at 49,200 points, which is crucial for maintaining longer-term bullish trends.
Stock Recommendations
For today’s trading session, Parekh has identified three stocks that investors may consider buying:
1. LTIMindtree Ltd. (LTIM)
Buy at ₹6,250; Target at ₹6,400; Stop Loss at ₹6,150.
2. Pricol Ltd. (PRICOLLTD)
Buy at ₹465; Target at ₹485; Stop Loss at ₹455.
3. Ambuja Cements Ltd. (AMBUJACEM)
Buy at ₹587; Target at ₹610; Stop Loss at ₹575.
Conclusion
As market volatility persists amid geopolitical tensions, investors are advised to approach trading with caution. Following the recommendations of experienced analysts like Parekh can help in making informed decisions. However, it remains essential for investors to conduct comprehensive research or consult accredited financial advisors before committing to any investment strategy.
Disclaimer: The views and recommendations presented in this article are those of individual analysts. They do not reflect the views of Mint. Investors are encouraged to consult certified experts before making any investment decisions.
