Buy or sell stocks for today: Domestic equity benchmarks Sensex and Nifty 50 extended their winning streak for the sixth consecutive session powered by auto, metals, and banking stocks amid strong global cues. Gains in select FMCG and other index heavyweights also drove the Indian stock market benchmarks to fresh record highs on the monthly derivatives expiry day.
The BSE Sensex jumped 666.25 points or 0.78 per cent to settle at a record high of 85,836.12. During the day, it reached a record intra-day peak of 85,930.43, surging 760.56 points or 0.89 per cent. The benchmark is just 69.57 points away from the 86,000-peak.
Rallying for the sixth day in a row, the NSE Nifty 50 climbed 211.90 points or 0.81 per cent to close at a record high of 26,216.05. During the day, it rose 246.75 points or 0.94 per cent to hit a fresh intra-day peak of 26,250.90.
The blue-chip indexes added 3.3 per cent and 3.5 per cent in the past six sessions after the outsized interest rate cut from the US Federal Reserve boosted hopes of higher foreign inflows into emerging markets like India.
International crude oil prices reversed their gains picked after the US Fed's interest rate cut and dropped over three per cent on September 26, on a media report that Saudi Arabia, the world's top crude exporter, will give up its price target in preparation for raising output.
Brent crude futures were last down $1.62, or 2.2 per cent, to $71.84 a barrel, while US West Texas Intermediate crude fell $1.6, or 2.3 per cent, to $68.09 per barrel. Both contracts fell more than $2 per barrel.
Silver rose to its highest level in nearly 12 years, with interest rate cuts by major central banks lifting investment interest in precious metals. Spot gold was up $2,670.52 per ounce, hitting a record high of $2,685.42 earlier in the day.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said, “Nifty has now decisively moved past the 26,000 zone, maintaining the strong uptrend, making new highs and has the next expected target of 26,900 level in the coming days.”
For Bank Nifty, the Prabhudas Lilladher expert said, “Bank Nifty has indicated a positive bullish candle formation on the daily chart to come out of the consolidation zone to trigger for a fresh round of upward move expecting targets of 55,100 and 56,600 levels in the coming days.”
Regarding stocks investors can buy, Vaishali Parekh recommended three intraday stocks for today: Steel Authority of India (SAIL), Canara Bank, and Ambuja Cements.
For today's outlook on the Nifty 50, Parekh said, “The Nifty 50 index would have the important support zone of 25,850 levels, which needs to be sustained to maintain the trend intact.” According to the expert, "The support for the day is seen at 26,100 levels while the resistance would be at 26,400 levels.
On Bank Nifty, Parekh said, “The Bank Nifty index would have the important support zone of 53,300 levels which has to be maintained as of now to anticipate for further rise.” Bank Nifty would have a daily range of 54,000-55,000 levels.
2. Canara Bank: Buy Canara Bank at ₹110 at a target price of ₹120 with a stop loss of ₹105.
3. Ambuja Cement: Buy Ambuja Cement at ₹626 at a target price of ₹650 with a stop loss of ₹615.
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.
