On October 25, 2024, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provided insights into the current state of the Indian stock market and recommended three stocks for investors to consider. The stocks highlighted are Bharat Forge, Titan Company, and Coromandel International.
Market Overview
The Indian stock market has recently exhibited a cautious trend, with the Nifty 50 index closing at a two-month low of 24,399. Parekh noted that the market’s overall sentiment may improve only if the Nifty breaks above 24,600 on a closing basis. Conversely, a decisive breach below 24,350 could lead to increased selling pressure.
Current Market Conditions
- The Nifty Bank index closed at 51,531, gaining 292 points.
- The FMCG Index declined by over 2% following disappointing earnings from major players like HUL and Nestle India.
- Selling pressure was also observed in the metals sector, particularly affecting Hindalco.
Nifty and Sensex Performance
As of October 25, both major indices have shown significant volatility:
- The Nifty 50 fell by 0.87%, closing at 24,795.75, while the BSE Sensex declined by 0.78%, ending at 81,050.
- Over the past six days, both indices have slid nearly 5.3%, marking a concerning trend for investors.
- The last time both indices experienced such a prolonged decline was in October 2023.
Recommended Stocks to Buy Today
Vaishali Parekh has identified three stocks that present potential buying opportunities:
- Bharat Forge
- Buy Price: ₹1,428
- Target Price: ₹1,450
- Stop Loss: ₹1,410
- Titan Company
- Buy Price: ₹3,333
- Target Price: ₹3,420
- Stop Loss: ₹3,300
- Coromandel International
- Buy Price: ₹1,641
- Target Price: ₹1,720
- Stop Loss: ₹1,600
Technical Analysis and Market Sentiment
Parekh emphasized that the Nifty has been maintaining support near the long-term ascending trendline zone of 24,400, suggesting a cautious bias in the market. The immediate support for the Nifty is set at 24,250, while resistance is noted at 24,600. For the Bank Nifty index, support is around 51,000, with resistance at 52,200.
“The Nifty’s overall trend remains cautious and will require a decisive breach above key levels to improve sentiment,” said Parekh.
Conclusion
Investors looking for opportunities in this cautious market may consider the stocks recommended by Vaishali Parekh. However, it is crucial to monitor market conditions closely and remain aware of potential volatility.
Disclaimer: The views and recommendations provided in this article are those of individual analysts and brokerage firms and do not constitute investment advice. Investors are encouraged to consult with certified financial professionals before making any investment decisions regarding stocks or securities.
