Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 extended their winning streak on Tuesday to hit all-time record highs before settling flat, having swung between slight gains and losses through the day. The boost to metal stocks from China's new monetary stimulus measures was later offset by profit-booking, especially in select banking and fast-moving consumer goods (FMCG) stocks.
During morning trade, the Sensex breached the 85,000 mark for the first time, and the Nifty 50 hit the historic 26,000 level during the fag-end. According to traders, investors struggle to find clear directions following a record rally.
After swinging between highs and lows, the 30-share BSE benchmark dipped 14.57 points or 0.02 per cent to settle at 84,914.04. During the day, it jumped 234.62 points or 0.27 per cent to achieve a fresh all-time intra-day peak of 85,163.23.
The Nifty 50 eked out a marginal gain of 1.35 points or 0.01 per cent to end at 25,940.40. During the day, it climbed 72.5 points, or 0.27 per cent, to achieve its new record intra-day high of 26,011.55. It took the NSE index 38 sessions to rise from 25,000 to 26,000.
The US Federal Reserve's supersized 50 bps interest rate cut last Wednesday sparked hopes of higher foreign inflows into Indian equities. The more significant boost on the day came after China, the top producer of several metals, including steel and coal, unveiled several measures to spur its sluggish economy.
The Nifty metal index jumped three per cent, the most among the 13 major sectors, to a near two-month high. Heavyweights Tata Steel, Hindalco and JSW Steel rose between 0.5 per cent and 4 per cent, while NALCO emerged as the biggest index gainer and rose over six per cent. Analysts said a growing domestic economy would stop Chinese steelmakers from dumping low-priced steel in other countries, including India, in search of profits.
In global markets, gold prices surged to an all-time high on Tuesday, driven by several positive triggers such as hopes of a further US Fed interest rate cut and China's economic stimulus measures. Spot gold rose 0.2 per cent to $2,633.25 per ounce after hitting a record of $2,639.95 earlier in the day. US gold futures gained 0.2 per cent to $2,657.90.
International crude oil prices climbed two per cent to hit a three-week high after the monetary stimulus from China, the world's top importer, and concerns that conflict in the Middle East could hit regional supply. At the same time, another hurricane threatened supply in the US, the world's biggest crude oil producer.
Brent futures rose $1.27, or 1.7 per cent, to settle at $75.17 a barrel, while US West Texas Intermediate (WTI) crude rose $1.19, or 1.7 per cent, to settle at $71.56. That was the highest close for Brent since September 2. Back home, crude oil futures last traded 1.46 per cent higher at ₹5,985 per barrel on the multi-commodity exchange (MCX).
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty, after the strong move witnessed in the last two sessions, touched the psychological figure of 26,000 level to create history once again and has maintained the strong uptrend to anticipate further rise.”
For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty has taken a breather near 54,200 zones after the decent rally witnessed from the 50 EMA zone of 51,000 levels and with bias maintained positive.”
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: LTIMindtree, Apollo Tyres, and Aurobindo Pharma.
For today's outlook on Nifty 50, Parekh said, “The Nifty 50 index has the next target of 26,400, with the 25,600 zone maintained as the near-term support as of now.”
According to the expert, “The support for the day is seen at 25,800 levels while the resistance is seen at 26,100 levels.”
On Bank Nifty, Parekh said, “The Bank Nifty index would have the next targets of 55,100 and 56,600 levels in the coming days provided the support zone of 52,300 level is sustained.”
Nifty Spot Index
Support – 25,800
Resistance - 26,100
Bank Nifty Spot Index
Support – 53,600
Resistance – 54,400
1. Aurobindo Pharma: Buy Aurobindo Pharma at ₹1,500 at a target price of ₹1,600 with a stop loss of ₹1,460.
2. LTIMindtree: Buy LTIMindtree at ₹6,350 at a target price of ₹6,600 with a stop loss of ₹6,250.
3. Apollo Tyres: Buy Apollo Tyres at ₹529 at a target price of ₹550 with a stop loss of ₹520.
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.
