Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 reversed gains due to profit booking in information technology (IT) and pharma stocks in the previous session, after hitting fresh record highs in early hours. The 30-share BSE Sensex dropped by 131.43 points or 0.16 per cent to settle at 82,948.23 in a volatile trade.
The index opened lower but cut short losses in late morning trade, climbing 246.72 points or 0.29 per cent to scale a new all-time intra-day peak of 83,326.38. The barometer re-entered negative territory in afternoon trade as investors preferred to book profits at record levels. Sensex hit a low of 82,700.63 in the pre-close session.
Also Read: IT stocks plunge as investors lock in gains before US Fed rate decision, Nifty IT drops 3.7%
The NSE Nifty index declined by 41 points or 0.16 per cent to close at 25,377.55. During the day, it advanced 63.65 points or 0.25 per cent to hit a fresh intra-day lifetime high of 25,482.20. Both the benchmarks rose about 0.25 per cent each to all-time highs during the session before reversing gains.
The market experienced a tug-of-war between declining IT stocks and resilient financial shares. A sharp drop in IT stocks heavily impacted the market, pulling the frontline indices down. Additionally, pharmaceutical stocks also faced significant declines.
Information technology companies, which earn a significant share of their revenue from the US, lost three per cent to post their worst session in six weeks. The Nifty pharma index lost 1.5 per cent. However, the highest-weighted financials sector added 1.4 per cent, capping benchmark losses.
Small and midcap stocks underperformed the benchmark indices. The Nifty Midcap 100 dropped 0.71 per cent to 59,752 points, while the Nifty Smallcap 100 index tumbled 0.64 per cent to 19,389 points.
The US Federal Reserve announced its sixth policy decision for 2024 on September 18 after a two-day Federal Open Market Committee (FOMC) meeting and slashed the benchmark interest rate by 50 basis points (bps) or (½) half a percentage point to 4.75 per cent-5 per cent for the first time in four years, broadly in line with Wall Street estimates.
US Fed policymakers see the benchmark interest rate falling by another half-point (50 bps) by the end of this year, another full percentage point in 2025, and a final half-point reduction in 2026 to end in a 2.75 per cent-3.00 per cent range. One bps is equal to one hundredth (1/100) of a percentage point.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty has been hovering near the 25,400 zone for quite some time moving within a narrow range resisting near 25,450 zone with 25,280 level positioned as the near-term support as of now, with overall bias and sentiment maintained positive.”
For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty has gained momentum ahead of the Fed Meet Outcome to arrive near the 53,000 zone and with favourable result confirmed, can carry on with the positive move for targets of 53,500 and 55,100 levels, as mentioned earlier."
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Deepak Fertilisers, RCF, and Aditya Birla Fashion & Retail.
Follow US Fed Meet Live Updates: Powell-led FOMC delivers 50 bps rate cut for first time in 4 years, eyes 2 more in 2024
For today's Nifty 50's outlook, Parekh said, “The index, once establishing confirmation after a decisive breach above 25,450 levels, shall aim for the next target of 25,900 levels with 25,200 considered as the important support zone.”
On Bank Nifty, Parekh said, “The index would have the crucial support zone near the significant 50EMA level of 51,200, which needs to be sustained in case of adverse scenario.”
According to the expert, Nifty 50's support for the day is at 25,200 levels, while the resistance is at 25,550 levels. Bank Nifty would have a daily range of 52,300-53,400 levels.
Nifty Spot Index
Support – 25,200
Resistance - 25,550
Bank Nifty Spot Index
Support – 52,300
Resistance – 53,400
1.Deepak Fertilisers & Petrochemicals Corp: Buy Deepak Fertiliser at ₹1,018 at a target price of ₹1,060 with a stop loss of ₹990.
2.RCF: Buy RCF at ₹193.6 at a target price of ₹203 with a stop loss of ₹189.
3.Aditya Birla Fashion & Retail: Buy Aditya Birla Fashion & Retail at ₹333.6 at a target price of ₹345 with a stop loss of ₹327.
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.
