As the Indian stock market navigates a bearish trend, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, has identified three stocks for intraday trading on Wednesday, October 23, 2024. The recommended stocks are Tata Power, REC, and Poly Medicure.
Market Overview
The Indian stock market has shown significant weakness recently, with the Nifty 50 index slipping below the crucial 24,700 mark. Following underwhelming Q2 results for 2024 and sharp selling by foreign institutional investors (FIIs) and local investors, the market ended lower for the third consecutive session on Tuesday. The Nifty 50 index lost 309 points, closing at 24,472, while the BSE Sensex fell by 930 points to settle at 80,220. The Nifty Bank index also experienced a steep decline, nosediving 705 points to end at 51,257. Both Mid-cap and Small-cap indices faced severe selling pressure, falling between 2.5% to 3.8%.
Sensex and Nifty Analysis
Vaishali Parekh believes that the trend has turned bearish after the Nifty 50 index breached below the neckline of a head-and-shoulders pattern on the daily chart at the 24,700 zone. She noted that the index has crucial support at around 24,000, and if this level fails to hold, it could test the significant zone of the 200-period moving average (MA) at approximately 23,300 in the coming days.Regarding the Bank Nifty index, Parekh highlighted that it has indicated a bearish trend with a significant candle formation. A decisive breach below the 51,000 mark could trigger further downward movement, with major support positioned near the important 200-period MA at around 49,300. For today’s trading session, Parekh mentioned that Nifty’s immediate support is at 24,300, while resistance will be at 24,600. The Bank Nifty is expected to trade within a range of 50,700 to 51,600.
Technical Analysis
Vaishali Parekh’s recommendations for stocks to buy or sell today include:
- Tata Power: Sell at ₹434 with a target of ₹420 and a stop loss set at ₹445.
- REC: Sell at ₹509 with a target of ₹490 and a stop loss set at ₹528.
- Poly Medicure: Buy at ₹2,573 with a target of ₹2,800 and a stop loss set at ₹2,500.
Conclusion
Investors should remain cautious in this volatile market environment as indicated by Vaishali Parekh’s recommendations. The bearish sentiment surrounding key indices suggests that traders should closely monitor their positions and adhere to stop-loss levels to mitigate potential losses.
Disclaimer: The views and recommendations above are those of individual analysts and brokerage firms and do not reflect the views of india hood. Investors are advised to consult certified experts before making any investment decisions as market conditions can change rapidly.This article aims to provide insights into current stock recommendations while emphasizing prudent trading strategies in light of recent market trends.
