Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 logged their sharpest drop in two months as investors locked in profits, especially in financial heavyweights and Reliance Industries, while China captured the region's attention with newly announced stimulus measures.
Declining for the second straight session, the BSE Sensex tumbled 1,272.07 points or 1.49 per cent to settle at 84,299.78. During the day, it fell 1,314.71 points or 1.53 per cent to 84,257.14. The Nifty 50 index, too, dropped below the psychologically important 26,000 mark. The index tanked 368.10 points or 1.41 per cent to settle at 25,810.85.
China's stimulus measures announced over the weekend added to the selloff in the previous session as traders shifted some of their focus from India to its bigger neighbour. The Indian rupee dropped on Monday but posted its best month since June. It was boosted by strong risk appetite following the US Federal Reserve's outsized rate cut and economic stimulus measures in China.
Also Read: Hyundai Motor India, Swiggy, Vishal Mega Mart, among two others receive SEBI approval to float IPOs
International crude oil prices changed a little on Monday but logged a 17 per cent loss for the third quarter as fears that a widening conflict in the Middle East could curtail crude supply were overshadowed by waning global demand concerns.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty has cooled off from the peak zone of 26,277 in the last two sessions, with some profit booking witnessed. With the overall trend remaining intact, one can anticipate further rise provided the levels near the trendline support of 25,650 are sustained in the coming sessions.”
For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty has eroded some gains from the peak zone of 54,467 levels in the last two sessions. With near-term support of 52,300 zones, a further breach below shall weaken the overall bias, with the next major support positioned near 51,300 levels.”
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Rail Vikas Nigam Ltd (RVNL), Indian Oil Corp, and Tribhovandas Bhimji Zaveri Ltd.
For today's outlook on the Nifty 50, Parekh said, “A decisive breach below shall further weaken the overall bias and open the gates for the next major support zone of 25,000 levels.” The support for the day is seen at 25,650 levels, while the resistance is seen near 26,000 levels.
On Bank Nifty, Parekh said, “Only a decisive move above the zone near 53,300 levels would once again improve the bias and can expect a further rise.” Bank Nifty would have a daily range of 52,600-53,400 levels.
1.Rail Vikas Nigam Ltd (RVNL): Buy RVNL at ₹533 at a target price of ₹550 with a stop loss of ₹520.
2.Indian Oil Corp (IOC): Buy IOC at ₹179 at a target price of ₹184 with a stop loss of ₹175.
3.Tribhovandas Bhimji Zaveri (TBZ): Buy TBZ at ₹282 at a target price of ₹303 with a stop loss of ₹272.
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.
