Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 displayed considerable volatility and declined over half a per cent in the previous session due to profit booking across sectors amid weak global cues. Selling pressure in index heavyweights, including Tata Motors, Reliance Industries and L&T, also dragged the frontline indices lower on Wednesday.
Both benchmarks struggled for direction for most of the session before profit booking intensified in the final two hours of trade. In a volatile trade, the 30-share BSE Sensex fell 398.13 points or 0.49 per cent to settle at 81,523.16. The Nifty 50 index fell by 0.50 per cent, slipping below the 25,000 mark to settle at 24,915.
The broader Nifty Midcap 100 index remained flat at 59,021 points. In the broader market, the BSE smallcap gauge declined 0.57 per cent and midcap index went lower by 0.52 per cent. Barring consumer stocks, all the other major sectors logged losses.
Late evening, US government data revealed that US inflation cooled for the fifth straight month and rose less than expected in August 2024, giving a major boost to Wall Street's bets on the US Federal Reserve's definite interest rate cuts of 25 basis points (bps) next week.
The US consumer price index (CPI) slowed to 2.5 per cent in August from a year ago, down from 2.9 per cent in July and the lowest annual figure since February 2021, the Labor Department's Bureau of Labor Statistics said on September 11.
Crude oil prices slightly recovered from a 33-month low level and climbed three per cent or over $2 a barrel driven by fears of lengthy production shutdowns in the offshore oil patch due to Hurricane Francine. Both oil benchmarks tanked on Tuesday, with Brent falling below $70 to its lowest price since December 2021 and US crude dropping to its lowest since May 2023.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty has witnessed some heavy profit booking from 25,100 zone to slip down with a weak candle pattern indicating a lower top formation once again to maintain a cautious approach in the coming sessions.”
For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty slipped down from the 51,400 levels to form another lower top pattern on the daily chart to slightly weaken the bias and further has 50,400 zone as the crucial support of the 100 period MA which needs to be sustained.”
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Havells India, BEML, and PB Fintech Ltd.
For the Nifty 50's outlook today, Parekh said, “The Nifty 50 index would have the crucial zone of 24,800 levels which need to be sustained to maintain the overall bias intact and, on the upside, would need to decisively breach above the 25,150 zone to confirm the continuation of a positive trend.”
On Bank Nifty Parekh said, “On the upper side, the 51,700 level is acting as a tough barrier and only a decisive breach shall trigger for fresh upward move.”
According to the expert, Nifty 50's support for the day is at 24,800 levels, while the resistance is at 25,100 levels. Bank Nifty would have a daily range of 50,700-51,500 levels.
1.Havells India: Buy Havells India at ₹1,961 at a target price of ₹2,010 with a stop loss ₹1,935.
2.BEML: Buy BEML at ₹3,890 at a target price of ₹4,150 with a stop loss ₹3,800.
3.PB Fintech Ltd: Buy PB Fintech Ltd at ₹1,789 at a target price of ₹1,850 with a stop loss ₹1,725.
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.
