Buy or sell: Vaishali Parekh recommends three stocks to buy today — September 18

Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 traded in a narrow range and experienced consolidation as traders maintained a cautious approach in the previous session ahead of the US Federal Reserve's widely expected interest rate cut and commentary.

Extending its record-setting spree for the second day, the 30-share BSE Sensex climbed 90.88 points or 0.11 per cent to settle at a lifetime high of 83,079.66. The key index settled above the 83,000 level for the first time. During the day, it rose by 163.63 points or 0.19 per cent to 83,152.41.

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The NSE Nifty gained 34.80 points or 0.14 per cent to settle above the 25,400 level for the first time at 25,418.55 on Tuesday, September 17 - its record closing high in a range-bound trade amid firm global trends. But the small- and mid-caps dipped 0.37 per cent and 0.13 per cent, respectively.

While the US Fed is widely expected to cut rates at its monetary policy decision on Wednesday, after Indian markets close, traders are uncertain about the size of the cut: 25 basis points or 50 basis points.

The odds of a 50-bps cut have climbed recently -- to 67 per cent from 50 per cent last week -- raising the chances of foreign investors shifting funds to emerging markets such as India in search of higher returns. However, the likelihood of a bigger rate cut has also prompted fears that the Fed may have started its easing cycle a little too late.

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D-Street analysts said the Fed's decision and commentary on growth will influence the near-term trajectory of Indian equities since they will impact foreign inflows and the outlook for US-dependent sectors such as IT and pharma.

Crude oil prices rose by a dollar per barrel or nearly two per cent in the previous session as supply disruptions mounted and Wall Street traders bet oil demand will grow if the US Federal Reserve lowers its borrowing costs in its monetary policy decision on Wednesday, as is widely expected.

US crude oil futures gained $1.31, or 1.9 per cent, to $71.40 during Tuesday's session. Benchmark Brent crude futures last rose by $1, or 1.4 per cent, to $73.75 per barrel. Back home, crude oil futures last gained 1.6 per cent higher at ₹5,981 per barrel on the multi-commodity exchange (MCX).
 

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Vaishali Parekh's stocks to buy today

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty has been consolidating within a very narrow range since the last 3 sessions near the 25,400 zone, awaiting the US Fed outcome, which shall decide the next directional move of the indices.”

For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty, with the gradual rise witnessed, has moved past the important resistance barrier of 51,700 level, having the next targets of 53,500 and 55,100 levels expected soon.”

Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Godrej Agrovet Ltd, Sobha Ltd, and Roto Pumps Ltd.
 

Stock market today

For today's Nifty 50's outlook, Parekh said, “The index has the next expected target of 25,800 level as mentioned earlier, with 25,200-zone maintained as the near-term important support level.”

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On Bank Nifty, Parekh said, “The index shall have the crucial support zone of 51,000 of the significant 50EMA zone, which needs to be sustained."

According to the expert, Nifty 50's support for the day is at 25,300 levels, while the resistance is at 25,550 levels. Bank Nifty would have a daily range of 51,800-52,700 levels.
 

Nifty Spot Index

Support – 25,300

Resistance - 25,550

Bank Nifty Spot Index

Support – 51,800

Resistance – 52,700.
 

Also Read: Week Ahead: US Fed policy, BoJ verdict, FII inflow, global cues among key market triggers as Nifty eyes 25,550
 

Stocks to buy today

1. Godrej Agrovet Ltd: Buy Godrej Agrovet Ltd at ₹836 at a target price of ₹865 with a stop loss of ₹815.

2.Sobha Ltd: Buy Sobha Ltd at ₹1,848 at a target price of ₹1,920 with a stop loss ₹1,800.

3.Roto Pumps Ltd: Buy Roto Pumps Ltd at ₹565 at a target price of ₹590 with a stop loss ₹555.

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.