Buy or sell stocks: The benchmark indices of the Indian stock market, Sensex and Nifty 50, after witnessing a relief rally in the last two trading sessions, struggled to maintain their upward momentum on Wednesday. Both indices closed lower, pulled down by weakness in the private sector banks. The Nifty 50 index closed 0.51 per cent lower at 24,340.85 points after Wednesday's trading session, compared to 24,466.85 points at the previous market close.
The BSE Sensex closed 0.53 per cent lower at 79,942.18 points, compared to 80,369.03 points at the previous market close.
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said that the Nifty has been finding tough resistance near the 24,500 zone. The index would need a decisive breach above this level to confirm further upward movement. Parekh estimates the Nifty 50 Spot index to find support at 24,200 points and face resistance at 24,500 points. The Bank Nifty index will likely move in a range of 51,300 to 52,300 today.
For today, Parekh recommended three buy-or-sell stocks: Hero Motocorp Ltd, Engineers India Ltd, and Lupin Ltd.
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty has been finding tough resistance near the 24,500 zone and would need a decisive breach above this level to confirm further upward movement in the index.”
“At the same time, the 24,000 would be maintained as a crucial and important support zone, failing which there can be intensified selling pressure with the next downside major support positioned near the 200 period MA at 23,400 levels,” said the stock market expert.
“Bank Nifty, after the strong move in the previous session, was visibly sluggish with weak bias ending near the 51,800 zone, losing 500 points. The 52,500 zone needs to be breached decisively to confirm a positive bias overall and thereafter can expect further rise with conviction,” said Parekh.
Parekh said that the Nifty 50 Spot for today has support at 24,200 points, while the resistance lies at 24,500 points. The Bank Nifty index would have a daily range of 51,300 to 52,300.
1. Hero Motocorp Ltd. (HEROMOTOCO): Buy at ₹4,892; Target at ₹5,100; Stop Loss at ₹4,750.
2. Engineers India Ltd. (ENGINERSIN): Buy at ₹184; Target at ₹190; Stop Loss at ₹180.
3. Lupin Ltd. (LUPIN): Sell at ₹2,153; Target at ₹2,080; Stop Loss at ₹2,190.
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.
