Buy or sell stocks: The Indian stock market indices witnessed a tough day Tuesday, as the early optimism faded, with investors switching back to their sell-on-the-rise strategy, fueling a sharp downturn. The Nifty 50 index closed 1.07 per cent at 23,883.45 points after Tuesday's market session, compared to 24,141.30 points at the previous market close.
The BSE Sensex index closed 1.03 per cent lower at 78,675.18 points, compared to 79,496.15 points at the previous market close.
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said the Nifty witnessed profitbooking during the intraday session to plunge near the crucial 23,800 zone with the bias and sentiment turning very cautious. Parekh estimates the Nifty 50 Spot index to find support at 23,600 points and face resistance at 24,200 points. The Bank Nifty index will likely move in the 50,400 to 52,000 range today.
For today, Parekh recommended three buy-or-sell stocks: Tata Power Co. Ltd, DLF Ltd, and Jindal Steel and Power Ltd.
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty witnessed profit booking during the intraday session to plunge near the crucial and important 23,800 zone with bias and sentiment turning very cautious.”
“Bank Nifty also slipped near the 51,000 zone, with major banking stocks like HDFC Bank, Kotak Bank, Axis Bank, and SBIN losing steam to end the index near 51,150 levels. Sector-wise, except for Realty & IT stocks, which ended in green, the rest of the counter closed in deep red, with Auto, PSU & Private Banks, energy, metal, infrastructure, FMCG, and real estate among the major laggards. The market breadth was weak, with the advance-decline indicating a ratio of 1:2 at close,” said the stock market expert.
“Nifty ended on the losing side after a short consolidation session ending below the 24,000 zone with bias turning weak, and it has the next crucial support zone maintained near the 23,800 zone, which needs to be sustained as of now,” said Parekh.
“For the bias to improve, a decisive breach above the 24,300 level is important to carry on with the upward move,” she said.
“Bank Nifty, after resisting near the 52,200 zone, has slipped below the important support level of the 50-EMA and 100-DMA zones at around 51,700 levels and almost touched the 51,000 zone. The index would have near-term support of 50,700, whereas the crucial support would be positioned at 50,400 levels, below which matter would turn much worse. One can maintain a cautious view and wait for further conviction and clarity in the market in the coming days,” said Vaishali Parekh.
Parekh said that the Nifty 50 Spot for today has support at 23,600 points, while the resistance lies at 24,200 points. The Bank Nifty index would have a daily range of 50,400 to 52,000.
1. Tata Power Co. Ltd. (TATAPOWER): Sell at ₹416; Target at ₹400; Stop Loss at ₹423.
2. DLF Ltd. (DLF): Sell at ₹770; Target at ₹750; Stop Loss at ₹785.
3. Jindal Steel and Power Ltd. (JINDALSTEL): Sell at ₹889; Target at ₹860; Stop Loss at ₹900.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
