Buy or sell stocks: The Indian stock market indices, escaping the pressure from the FPI sell-offs and weak Q2 results, closed in the green for another day, fueled by the Mahayuti alliance's win in the Maharashtra state elections. The Nifty 50 index closed 1.32 per cent higher at 24,221.90 points on Monday, compared to 23,907.25 points at the previous market close.
The BSE Sensex closed 1.25 per cent higher at 80,109.85 points, compared to 79,117.11 points in the previous market session.
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said the Nifty indicated a firm pullback in the last two sessions. The index now needs a decisive breach above the 24,500 zone to ensure a further rise in the upcoming days. Parekh estimates the Nifty 50 Spot index to find support at 24,000 points and face resistance at 24,400 points. The Bank Nifty index will likely move in the 51,500 to 52,800 range.
For today, Parekh recommended three buy-or-sell stocks: Indus Towers Ltd, Cummins India Ltd, and KPI Green Energy Ltd.
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty has gained by more than 1,000 points in the last 2 sessions indicating a strong pullback from the low made near 23,260 zone improving the bias and sentiment significantly, with 24,500 zone acting as the important barrier, and would need a decisive breach above that zone to ensure a further rise in the coming days.”
“At the same time, the index would have the 23,800 zone as the immediate support, which needs to be sustained,” said the stock market expert.
“Bank Nifty indicated a strong bounce back from the 200-period MA of 49,800 levels to almost reach the important resistance zone of 52,500 levels, which needs to be breached decisively to establish conviction and anticipate for a further rise in the coming days. The index would have the important support level of 51,400 zone, which needs to be sustained,” said Parekh.
Parekh said that the Nifty 50 Spot for today has support at 24,000 points, while the resistance lies at 24,400 points. The Bank Nifty index would have a daily range of 51,500 to 52,800.
1. Indus Towers Ltd. (INDUSTOWER): Buy at ₹337; Target at ₹345; Stop Loss at ₹330.
2. Cummins India Ltd. (CUMMINSIND): Buy at ₹3,530; Target at ₹3,800; Stop Loss at ₹3,420.
3. KPI Green Energy Ltd. (KPIGREEN): Buy at ₹767; Target at ₹800; Stop Loss at ₹740.
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.
