Buy or sell stocks for today: Domestic equity benchmarks, Nifty 50 and Sensex, took a breather after days of relentless rally to settle flat on Tuesday, following profit-taking in metal, oil and information technology (IT) shares amid a lack of fresh triggers and weak global trends.
Breaking its 10-day winning streak, the 30-share BSE Sensex slipped 4.40 points, or 0.01%, to settle at 82,555.44 in a range-bound trade. During the day, it dropped 159.08 points, or 0.19%, to 82,400.76. The broader Nifty50 of NSE eked out meagre gains of 1.15 points to close at a fresh peak of 25,279.85, marking a record 14 straight day of gains.
In the 10-day rally, Sensex soared 2,135 points or 2.61%. Nifty has surged nearly 1,141 points or 4.59% in 14 straight days. The Nifty50 rose 4.7% in its thirteen-session rally, its longest ever, until Monday. Both benchmarks hit lifetime highs in the previous session.
The BSE Midcap and Smallcap indices rose 0.19% and 0.54%, respectively. BSE-listed firms' overall market capitalisation (mcap) rose to nearly ₹465.52 trillion from nearly ₹464.85 trillion in the previous session.
Market analysts believe a healthy consolidation period is needed to return valuations to more comfortable levels. Global cues have been muted as investors await US macro prints to gauge the size of the potential Fed rate cut this month.
The US jobs data due on Friday is a key number that will impact the Fed's monetary policy, which will be announced on 18 September. Crude oil prices crashed 5% on Tuesday, to hit their lowest levels in nine months after reports emerged that a deal was in the offing to resolve a dispute that has halted Libyan production and exports.
The Libya news compounded an earlier price fall tied to weak Chinese economic data. Brent crude futures were last down $3.51, or 4.5%, to $74.02 a barrel, the lowest level since December. The global benchmark had slipped below $74 per barrel during the session, completely erasing its gains made in 2024 so far.
Vaishali Parekh, Vice President—of Technical Research at Prabhudas Lilladher, said, ‘’As mentioned earlier, we maintain our near-term target of 25,600 for Nifty index with support of 25,000 zone remaining intact.''
For Bank Nifty, the Prabhudas Lilladher expert added that ICICI Bank has been picking up with a strong bias maintained, whereas Axis Bank and SBI have shown signs of improving bias.
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: ICICI Bank, LIC, and Power Finance Corp.
For Nifty 50's outlook today, Parekh said, “Nifty has taken a breather near 25,300 zone with consolidation witnessed maintaining the bias and sentiment strong and further rise is anticipated in the coming days.”
“Bank Nifty has gradually picked up and would need a decisive breach above 51,800 levels to further strengthen the trend and expect further rise for next targets of 53500 and 55,100 levels in the coming days,” she added.
According to the expert, Nifty50's support for the day is seen at 25,150, while the resistance is seen at around 25,400. Bank Nifty's daily range is seen at 51,300-52,200.
1.Power Finance Corp (PFC): Buy PFC at ₹560, Stop Loss ₹548
2.Life Insurance Corp (LIC): Buy LIC at ₹694, Target ₹720, Stop Loss 680
3.ICICI Bank: Buy ICICI Bank at ₹1,250, Target ₹1,285, Stop Loss ₹1,230
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.
