Buy or sell stocks for today: Domestic equity benchmarks Nifty 50 and Sensex extended their losses into the third consecutive session as investors remained cautious amid prevailing concerns over a possible economic slowdown in the US, geopolitical tensions in the Middle East, and the markets' high valuations.
The 30-share Sensex settled at 78,593.07 on Tuesday, a loss of 166 points, or 0.21 per cent. The Nifty 50 closed at 23,992.55, down 63 points, or 0.26 percent. The mid-cap and small-cap indices underperformed the benchmarks. The BSE Midcap index fell 0.71 per cent, while the Smallcap index ended 0.57 per cent lower.
The frontline indices have lost more than four per cent in the last three trading sessions due to weak global cues. Investors' wealth eroded by ₹22 lakh crore in three days of market slump. The market capitalisation of BSE-listed firms dropped by ₹22,02,996.27 crore to hit ₹4,39,59,953.56 crore ($5.24 trillion) in three trading days.
On Tuesday, Wall Street bounced back and rose over one per cent as investors looked for bargains after a global stock selloff and dovish comments from US Federal Reserve officials lifted market sentiment. In the bond market, Treasury 10-year yields advanced 5 basis points to 3.84 per cent.
Global crude oil prices, too, rose about one per cent in volatile trade on August 6, bouncing off multi-month lows as investors turned their attention to supply tightness amid the Israel-Iran conflict and as financial markets recovered from their recent slump. Brent crude futures were up 58 cents, or 0.8 per cent, to $76.88 a barrel.
Also Read: Oil bounces from multi-month lows on tight supply amid Israel-Iran conflict; Brent nears $77/bbl
Vaishali Parekh, Vice President—of Technical Research at Prabhudas Lilladher, said, ‘’The index would have the next crucial support at the 23,700 level of the long-term trendline zone, which needs to be sustained to maintain the overall trend.''
For Bank Nifty, the Prabhudas Lilladher expert added that the index is precariously placed with the next important level of the 100-period MA at 49,500 levels to be watched for.
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Britannia Industries, Natco Pharma, and Ami Organics.
Also Read: Stocks to buy: Exide Industries to IEX—SMC Global Securities lists four stocks to bet on amid volatility
On the outlook for the Nifty 50's performance today, Vaishali Parekh said, ‘’Nifty after the pullback witnessed in the morning session scaled 24,380 zone but failed to sustain with overall bias and sentiment weakening and gradually erased the gains as the day progressed to end below the 24,000 zone.''
‘’Bank Nifty scaled the 50,600 zone in the morning session but, witnessing tough resistance, gradually slipped down to end below the 49,800 zone with bias turning weak,'' she added.
According to the expert, Nifty's support for the day is at 23,800 levels, while the resistance is at 24,200 levels. Bank Nifty's daily range is 49,300-50,200 levels.
Support – 23,800
Resistance - 24,200
Support – 49,300
Resistance – 50,200
1.Britannia Industries: Buy Britannia Industries at ₹5,854, Target ₹6,100, Stop Loss ₹5,720
2.Natco Pharma: Buy Natco Pharma at ₹1,351.65, Target ₹1,405, Stop Loss ₹1,320
3.Ami Organics: Buy Ami Organics at ₹1,299.90, Target ₹1,355, Stop Loss ₹1,274.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We advise investors to consult with certified experts before making any investment decisions.
