Buy or sell stocks for today: Domestic equity benchmarks Nifty 50 and Sensex dropped nearly 1% in the previous session, dragged by a broad sell-off in banking, auto, and metal stocks. The frontline indices extended their losses to the third straight session on Tuesday amid ongoing foreign fund outflows and mixed global market trends.
The 30-share BSE Sensex tumbled 692.89 points or 0.87 per cent to settle at 78,956.03. During the day, it tanked 759.54 points or 0.95% to 78,889.38. The NSE Nifty slumped 208 points or 0.85% to 24,139. Broader markets were also weak as the Nifty Midcap index was down 0.8%, and the Nifty Smallcap index was down 1.5%.
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Investors became poorer by ₹4.52 lakh crore, and the market capitalisation of BSE-listed firms declined by ₹4,52,565.44 crore to ₹4,45,30,265.42 crore ($5.30 trillion). HDFC Bank, the top private lender and the heaviest stock in the Nifty 50, fell by 3.4%, leading to losses on the index.
Global indexes provider MSCI raised the proportion of HDFC Bank's shares available for purchase by overseas investors but said the changes will come into effect in two stages, in August and in November, contrary to D-Street's expectations of one move in this month. Brokerage Nuvama, which predicted inflows of $3.2 billion—$4 billion into HDFC Bank in August after the revision, now sees around $1.8 billion in inflows this month.
International crude oil prices snapped their five-day winning streak over rate cut hopes and declined more than $1 per barrel on Tuesday as investors saw a reduced risk of a wider war in the Middle East. Benchmark Brent crude futures settled down $1.61, or 1.96%, at $80.69 a barrel.
Wall Street rallied to one of its best days of the year after the first of several highly anticipated economic reports this week came in better than expected. The S&P 500 jumped 1.7% for its third-best day of 2024 after the US government reported that wholesale inflation slowed more than economists expected last month.
The Dow Jones Industrial Average rose 408 points, or one per cent, and the Nasdaq composite was up 2.3%. Shares of Starbucks Corp zoomed 24 per cent to hit their biggest intraday gain on record, adding over $20 billion in market capitalisation on a management rejig announcement.
Vaishali Parekh, Vice President—of Technical Research at Prabhudas Lilladher, said, ‘’Nifty 50 has the 24,000 zone as the crucial support as of now, which needs to sustain to maintain the overall trend intact.''
For Bank Nifty, the Prabhudas Lilladher expert added that the index's crucial support lies near the important 100-period MA at 49,600, which needs to be sustained; below it, the trend would turn weak.
‘’Overall, maintaining a cautious approach, one needs to wait and watch for things to settle down and establish some conviction,'' she added.
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: HCL Technologies, Dr Reddy's Laboratories, and TajGVK Hotels & Resorts.
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On the outlook for the Nifty 50's performance today, Vaishali Parekh said, ‘’Nifty has been finding resistance near the 24,400 zone for the past 5-6 sessions and currently has slipped below the near-term support zone of 24,200 levels, with bias weakening.''
‘’Bank Nifty has been moving within a tight range with resistance barrier at 50,700 levels,'' she added. According to the expert, Nifty 50's support for the day is seen at 24,000 levels while the resistance is at 24,300 levels. Bank Nifty would have a daily range of 49,300-50,300 levels.
Support – 24,000
Resistance - 24,300
Support – 49,300
Resistance – 50,300
1.HCL Technologies: Buy HCL Tech at ₹1,592.65, Target ₹1,660, Stop Loss ₹1,555
2.Dr Reddy's Laboratories: Buy Dr Reddy's Laboratories at ₹6,948.40, Target ₹7,320, Stop Loss 6,800
3.TajGVK Hotels & Resorts: Buy TajGVK Hotels & Resorts at ₹312.20, Target ₹330, Stop Loss ₹304.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
