Buy or Sell Stocks: India’s leading stock market indices, the Sensex and Nifty 50, opened on a positive note on Wednesday, initially gaining traction after the Reserve Bank of India (RBI) hinted at the possibility of a rate cut in upcoming Monetary Policy Committee (MPC) meetings. However, momentum slowed as investors engaged in profit-taking, particularly in heavyweight stocks such as Reliance Industries, HDFC Bank, and ITC. As a result, the Nifty 50 index ended the trading session 0.12 percent lower at 24,981.95 points, down from 25,013.15 points at the previous market close.
In contrast, the BSE Sensex index experienced a modest gain, closing 0.21 percent higher at 81,467.10 points. This is a decrease from its previous closing value of 81,634.81 points, highlighting market volatility as investors reassess their strategies.
Market Insights by Vaishali Parekh
According to Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, the Nifty showed a pullback in the previous trading session but faced resistance near the 25,250 mark amid ongoing volatility and significant profit booking. The index struggled to maintain gains, closing near the critical 25,000 level, which suggests a cautious investing approach moving forward. Parekh predicts that the Nifty 50 Spot index may find support around 24,800 points, with resistance anticipated at 25,150 points. Similarly, she forecasts that the Bank Nifty index will fluctuate within a range of 50,500 to 51,500.
Recommended Stocks for Today
For today’s trading session, Parekh has identified three stocks for investors to consider:
Stock Market Outlook
Continuing with her market analysis, Parekh elaborated that following a pullback in the previous session, the Nifty faced resistance around the 25,250 level, but heavy profit booking led to erasing its gains and forming a low top pattern on the daily chart. She emphasized maintaining a cautious investment stance, stressing the importance of the index holding above the low of 24,700 points to avoid a potential bearish trend that could result in further declines.
Bank Nifty Performance
Parekh noted that the Bank Nifty faced resistance near the 51,700 mark. Post the RBI policy announcement, it encountered heavy profit booking, leading to a drop toward the 51,000 level, indicating a bearish bias. To maintain an upward trajectory, the Bank Nifty must sustain above the low made near 50,200 points to prevent increased selling pressure.
Parekh summarized that the Nifty 50 Spot is expected to have support at 24,800 points and resistance at 25,150 points. As for the Bank Nifty, a daily range is projected between 50,500 and 51,500 points, highlighting the current market dynamics.
Stock Recommendations by Vaishali Parekh
1. Cipla Ltd. (CIPLA): Buy at ₹1,680; Target at ₹1,745; Stop Loss at ₹1,640.
2. National Aluminium Co. Ltd. (NATIONALUM): Buy at ₹214.25; Target at ₹223; Stop Loss at ₹209.
3. Birlasoft Ltd. (BSOFT): Buy at ₹591.25; Target at ₹622; Stop Loss at ₹578.
Disclaimer: The opinions and recommendations outlined within this article reflect those of individual analysts and do not necessarily represent the views of Mint. Investors are advised to consult with certified professionals before making any investment decisions.
