Buy or sell stocks: After losing for three straight sessions, the Indian stock market witnessed some buying interest in the Friday session. The Nifty 50 index finished 104 points higher at 24,854; the BSE Sensex ended 218 points up at 81,224, whereas the Bank Nifty index gained 805 points and closed at 52,094. Cash market volumes on the NSE rose 4.2% compared to the previous session. The broader market indices underperformed compared to the Nifty 50 index even as the advance-decline ratio fell to 0.90:1.
Vaishali Parekh, Vice President—Technical Research at Prabhudas Lilladher, believes that the Indian stock market mood has improved after the close of the Nifty 50 index above the 24,850 mark. The Prabhudas Lilladher expert said the 50-stock index would need to decrease above 25,200 to improve the bias overall. At the same time, the 24,700 zone will remain the crucial band below which the sentiment can turn negative once again.
Regarding stocks to buy today, Vaishali Parekh recommended buying these three shares: Ambuja Cements, Hindustan Copper, and Cipla.
On the outlook for Nifty today, Vaishali Parekh said, "The Nifty 50 index during the week overall witnessed a weak session losing strength from the 25,200 zone and after making a low of 24,570 level, recovered strongly to close above the 24,850 zone to improve the sentiment to some extent. The index would need to breach above the 25,200 levels decisively to improve the bias overall while the 24,700 zone would remain the crucial band below which the sentiment can turn negative once again."
"The Bank Nifty maintained the 51,000 zone during the week, indicating a strong support zone, and has moved past the significant 50-EMA zone of 51,750 levels to improve the bias. The index would need a decisive breach above 52,500 levels to establish conviction for a further rise in the coming days," Parekh added.
Parekh added that the Nifty's immediate support today is at 24,700, while resistance is at 25,000. The Bank Nifty will have a daily range of 51,700 to 52,700.
1] Ambuja Cements: Buy at ₹576, target ₹600, stop loss ₹560;
2] Hindustan Copper: Buy at ₹323, target ₹340, stop loss ₹313; and
3] Cipla: Buy at ₹1,553, target ₹1,590, stop loss ₹1,530.
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.
