Buy or sell stocks: India's benchmark stock market indices, Sensex and Nifty 50, resumed their upward trend fueled by the shares of select IT and banking heavyweights, including Infosys and HDFC Bank. The Nifty 50 index closed 0.66 per cent higher at 25,127.95 points after Monday's trading session, compared to 24,964.25 points at its previous market close.
The BSE Sensex index closed 0.73 per cent higher at 81,973.05 points, compared to 81,381.36 points at the previous market close.
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said that the Nifty, after consolidating near the 25,000 zone for a while has shown a positive candle formation moving above the zone at 25,050 levels to improve the bias with the frontline stocks picking up. Parekh estimates the Nifty 50 Spot index to find support at 25,000 points and face resistance at 25,300 points. The Bank Nifty index will likely move in a range of 51,400 to 52,600 today.
For today, Parekh recommended three buy-or-sell stocks: Indusind Bank Ltd, Tejas Networks Ltd, and Marksans Pharma Ltd.
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty after consolidating near the 25,000 zone for quite some time has indicated a positive candle formation moving above the significant 50EMA zone at 25,050 levels to improve the bias with some of the frontline stocks picking up.”
“The index would need a decisive breach above the 25,300 zone to establish some conviction and stability, as of now, to carry on with the positive move further ahead,” said the stock market expert.
“Bank Nifty has indicated a decent pullback to close just above the important 50EMA level at 51750 with bias getting better and heavyweight banking stocks like HDFC Bank and Kotak Bank looking technically good to anticipate for further rise. The index would have the near-term support of 51000 level which needs to be sustained to maintain the bias intact,” said Parekh.
Parekh said that the Nifty 50 Spot for today has support at 25,000 points, while the resistance lies at 25,300 points. The Bank Nifty index would have a daily range of 51,400 to 52,600.
1. Indusind Bank Ltd. (INDUSINDBK): Buy at ₹1,368; Target at ₹1,400; Stop Loss at ₹1,345.
2. Tejas Networks Ltd. (TEJASNET): Buy at ₹1,210; Target at ₹1,250; Stop Loss at ₹1,190.
3. Marksans Pharma Ltd. (MARKSANS): Buy at ₹297; Target at ₹315; Stop Loss at ₹288.
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.
