Buy or sell stocks for today: The domestic benchmark indices of the Indian stock market, the BSE Sensex and the Nifty 50 index, closed in negative territory for the third consecutive session on Thursday following the escalation of tensions in West Asia affecting oil prices, strong foreign capital outflow after China's stimulus announcements, and disappointing second-quarter earnings.
Sensex dropped by 495 points, or 0.61 per cent, at 81,007 on Thursday, while the Nifty 50 was at 24,749.85, down 221 points, or 0.89 per cent.
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said that the Nifty 50 index broke the 24,900 zone, which had been acting as support for some time and slipped down with a weak bias below the 24,800 level, with a bearish candle formation on the daily chart.
Parekh estimates that the Nifty 50 Spot index will find support at 24,600 points and face resistance at 25,000 points. The Bank Nifty Spot index is expected to move from 50,800 to 51,800 today.
Today, Parekh has recommended three buy-or-sell stocks: State Bank of India, HEG Ltd, and SeQuent Scientific Ltd.
On the outlook for the Nifty 50 and Bank Nifty Index, Parekh said, “The index would have the crucial support zone of 24,700 level which was the previous low made and upside for the bias to improve, would need to breach above the 25,000 levels.”
“BankNifty tanked with a bearish candle formation on the daily chart indicating a lower top pattern and moved below the important 100 period MA at 51,380 zone to weaken the bias,” she added.
“For the bias to improve, the index would need to breach above the 52,000 zone decisively whereas on the downside the crucial support zone is positioned near 50400 levels,” the stock market expert said.
“The support for the day is seen at 24600 levels while the resistance is seen at 25000 levels. BankNifty would have the daily range of 50800-51800 levels,” according to Parekh.
2. HEG Ltd (HEG): Buy at ₹2,572; Target at ₹2,650; Stop Loss at ₹2,290.
3. SeQuent Scientific Ltd (SEQUENT): Buy at ₹196; Target at ₹205; Stop Loss at ₹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.
