Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 extended their winning streak for the fifth consecutive session after fag-end buying in banking and power shares helped stock markets recoup early losses. Both frontline indices settled at all-time highs on positive triggers.
After a roller-coaster swing, the 30-share BSE Sensex rose by 255.83 points or 0.30 per cent to settle at an all-time high of 85,169.87. During the day, the index surged 333.38 points or 0.39 per cent to hit a record intra-day peak of 85,247.42.
The broader NSE Nifty 50 climbed 63.75 points or 0.25 per cent to settle above the 26,000 level for the first time. The 50-issue index closed at a record high of 26,004.15 after scaling a new intra-day peak of 26,032.80.
Both benchmarks had fallen as much as 0.2 per cent earlier in the session. Nifty 50 has hit new highs in every session since the supersized interest rate cut by the US Federal Reserve boosted investors' risk appetite last week, with nine of the thirteen major sectoral indexes logging gains on the day.
The US Fed's unwinding of interest rates by 50 basis points (bps) has been lending fresh support to Indian equities. However, the broader small—and mid-caps indices, which are domestically focused, settled 0.4 per cent and 0.6 per cent lower respectively on Wednesday due to a lack of local triggers.
In commodity markets, gold prices soared to fresh record highs as hopes for another big rate cut by the US Federal Reserve bolstered bullion's bull rally, and a softer US dollar added to the metal's appeal.
US gold futures gained 0.6 per cent to $2,691.40. Back home, gold futures last traded 0.19 per cent higher at ₹75,148 per 10 grams after hitting an intraday high of ₹76,000 on the multi-commodity exchange (MCX).
Crude oil prices slumped more than two per cent as worries over supply disruptions in Libya eased and demand concerns continued despite China's latest stimulus plans. Still, falling crude inventories in the US and rising tensions in the Middle East supported the oil benchmarks.
Brent crude futures fell $1.71, or 2.27 per cent, to settle at $73.46 a barrel. US West Texas Intermediate crude slipped $1.87, or 2.61 per cent, to settle at $69.69 per barrel. Oil prices rose by about 1.7 per cent on Tuesday after China announced the outsized interest rate cuts and more funding.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty has been steadily picking up with a strong trend visible and has now breached above the 26,000 zone, improving the bias. As mentioned earlier, a further target of 26,400 is expected in the coming days.”
For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty has paused the strong move, maintaining the trend intact. A decisive move above 54,200 shall trigger another fresh upward move with targets of 55,100 and 56,600 levels visible in the coming days.”
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: FirstSource Solutions Ltd, Dr Reddy's Laboratories Ltd, and NOCIL Ltd.
For today's outlook on the Nifty 50, Parekh said, “Nifty 50's undertone has been maintained strong, with the broader markets consistently supporting the benchmark indices, maintaining the sentiment intact.”
According to the expert, “The support for the day is seen at 25,900 levels while the resistance would be seen at 26,200 levels.”
On Bank Nifty, Parekh said, “The zone near 53,000 level is the important support from current zone which needs to be sustained to maintain the overall trend.” BankNifty would have the daily range of 53,800-54,600 levels.
1.FirstSource Solutions Ltd: Buy FirstSource Solutions at ₹341 at a target price of ₹360 with a stop loss of ₹330.
2.Dr Reddy's Laboratories Ltd: Buy Dr Reddy's Laboratories at ₹6,701 at a target price of ₹7,000 with a stop loss of ₹6,600.
3.NOCIL Ltd: Buy NOCIL at ₹283 at a target price of ₹300 with a stop loss of ₹273.
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.
