Buy or sell stocks for today: Domestic equity benchmarks Nifty 50 and Sensex settled marginally lower in volatile trade as the government proposed to hike the securities transaction tax on futures & options (F&O) in Modi 3.0's first Union Budget. The frontline indices showed an impressive reversal toward the end of the session, shrugging off concerns over a hike in taxes on capital gains.
The key indices, however, recovered most of the losses as the Sensex closed 73 points, or 0.09 per cent, lower at 80,429.04, while Nifty 50 settled 30 points, or 0.12 per cent, down at 24,479.05. On the broader front, mid and smallcap indices underperformed the benchmarks. The BSE midcap index suffered a loss of 0.74 per cent, while the smallcap index ended 0.18 per cent lower.
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The domestic benchmarks dropped nearly two per cent during the session in a knee-jerk reaction to Finance Minister Nirmala Sitharaman's announcement of hikes in the security transactions tax (STT), long-term capital gains tax (LTCG), and short-term capital gains tax (STCG). Among the Sensex pack, Titan jumped over 6 per cent, followed by ITC which surged more than five per cent.
Adani Ports, NTPC, Infosys, Hindustan Unilever, HCL Technologies and Sun Pharma were among the other big gainers. However, Larsen & Toubro, Bajaj Finance, State Bank of India, Axis Bank, HDFC Bank were the major laggards.
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, said, ‘’The index would have the near-term crucial support of 24,000 zone which needs to be sustained below which the bias can turn weak with sentiment turning into cautious mode.''
For Bank Nifty, the Prabhudas Lilladher expert added, ‘’A decisive breach above 52,800 levels shall improve the bias to anticipate for further rise in the coming days. The support for the day is seen at 24,300 levels, while the resistance would be seen at 24,650 levels. BankNifty would have a daily range of 51,200-52,500 levels.''
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Escorts Kubota, Granules, and IPCA Lab.
On the outlook for the Nifty 50's performance today, Vaishali Parekh said, ‘’Nifty index was subjected to huge fluctuations as the budget session unfolded as it hit the low near 24,075 zone and regained to scale above the 24,500 level during the intraday session.''
‘’Bank Nifty amid the volatile session breached and closed below the important 51,800 zone slightly weakening the bias and further ahead would have the crucial support zone of 51,000 levels below which the overall bias would turn weak,'' added Parekh.
Support – 24,300
Resistance - 24,650
Support – 51,200
Resistance – 52,500
1.Escorts Kubota Ltd: Buy Escorts Kubota at ₹4,120, Target ₹4,300, Stop Loss ₹4,050
2.Granules: Buy Granules at ₹526.75, Target ₹548, Stop Loss ₹514
3.IPCA Lab: Buy IPCA Lab at ₹1,241, Target ₹1,300, Stop Loss ₹1,225
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 varyfive
