As the Indian stock market continues to face headwinds, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, has identified three stocks that investors should consider buying today. The recommended stocks are Paytm, Firstsource Solutions, and Zydus Lifesciences. With the Nifty 50 index closing below the 24,500 mark, Parekh emphasizes a cautious approach in the current market environment.
Current Market Overview
The Indian stock market has shown weakness in recent sessions, influenced by rising US dollar rates and global market sentiments. On October 23, the Nifty 50 index fell by 36 points, closing at 24,435, while the BSE Sensex dropped by 138 points to finish at 80,081. The Nifty Bank index also experienced a slight decline, ending at 51,239. Despite these declines, broader market indices showed some resilience, with positive advance-decline ratios indicating that more stocks rose than fell.
Latest Nifty and Sensex Performance
As of October 24, 2024, the Nifty 50 index is currently valued at 24,435.5, reflecting a decrease of 0.15% from the previous close. The index has faced significant volatility recently, with crucial support levels near 24,000 and resistance around 24,700.The BSE Sensex has also experienced fluctuations, currently standing at 80,081.98, down by 0.17%. Both indices have been impacted by weak global cues and selling pressure from foreign institutional investors (FIIs). The overall sentiment in the market remains cautious as investors await upcoming earnings reports and economic indicators that could influence future trading.
Recommended Stocks to Buy
In light of the current market conditions, Vaishali Parekh recommends the following stocks:
- Paytm (One 97 Communications): Buy at ₹745 with a target price of ₹790 and a stop loss set at ₹720. Paytm has been focusing on expanding its financial services and improving user engagement, which could drive growth in the coming quarters.
- Firstsource Solutions: Buy at ₹350 with a target of ₹380 and a stop loss of ₹335. This company has been performing well in the business process management sector and is expected to benefit from increased outsourcing trends.
- Zydus Lifesciences: Buy at ₹999 with a target of ₹1,040 and a stop loss of ₹975. Zydus has a strong pipeline of products and is well-positioned in the pharmaceutical sector, particularly with its focus on generics and biosimilars.
Market Sentiment and Stock Outlook
Vaishali Parekh emphasizes that while immediate support for the Nifty is at 24,300, resistance levels are near 24,600. The Bank Nifty is expected to trade within a range of 50,700 to 51,700. Investors should remain vigilant as market conditions can change rapidly due to external factors such as global economic indicators and domestic policy changes.In her analysis, Parekh suggests that investors adopt a cautious approach while considering these recommendations. The current volatility in markets necessitates careful monitoring of stock performance and broader economic indicators.
Conclusion
As investors navigate through a challenging market environment, Vaishali Parekh’s recommendations for Paytm, Firstsource Solutions, and Zydus Lifesciences provide actionable insights for potential buying opportunities. With careful consideration of targets and stop losses, investors can position themselves strategically amid ongoing market fluctuations.
Disclaimer: The views and recommendations expressed in this article are those of individual analysts or brokerage firms and do not reflect the opinions of Mint. Investors are advised to consult certified experts before making any investment decisions.
