Stocks to buy or sell: Vaishali Parekh recommends three shares for Wednesday — Oct 23

Buy or sell stocks: Following underwhelming Q2 results 2024 season and sharp selling by FIIs and local investors, the Indian stock market ended lower for the third straight session on Tuesday. The Nifty 50 index lost 309 points and ended at 24,472. The BSE Sensex crashed 930 points and closed at 80,220, whereas the Nifty Bank index nosedived 705 points and ended at 51,257. The Mid-cap and Small-cap indices came under severe selling pressure, falling between 2.5% to 3.8%. Global cues were also negative as investors evaluated third-quarter corporate earnings amid uncertainty regarding global economic growth and interest rate trajectories; however, the extent of weakness in the Indian markets was exceptional.

Buy or sell stocks by Vaishali Parekh

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market trend has turned bearish after the Nifty 50 index slipped below the 24,700 mark. The Prabhudas Lilladher expert said the 50-stock index has crucial support at the 24,000 mark. Parekh said that the Bank Nifty index also showcases a bearish trend and can touch the 49,300 mark once it breaks down below the 51,000 mark.

Regarding stocks to buy or sell on Wednesday, Vaishali Parekh recommended these three shares: Tata Power, REC, and Poly Medicure.

Stock market today

On the outlook for Nifty today, Vaishali Parekh said, "The Nifty 50 index has breached below the neckline of the head and shoulder pattern on the daily chart at 247,00 zone to turn the bias bearish expecting for a further slide in the coming days with sentiment maintained with a very cautious approach. The index would have crucial support in around 24,000 zones, failing which, it can test the important zone of 200 period MA at 23,300 levels in the coming days."

"The Bank Nifty index has indicated a big bearish candle to turn the bias weak, and a decisive breach below the 51,000 zone shall trigger further downward movement with the next major support positioned near the important 200 period MA at 49,300 levels," Parekh added.

Parekh added that Nifty's immediate support today is at 24,300, while resistance will be at 24,600. The Bank Nifty will have a daily range of 50,700 to 51,600.

Stocks to buy or sell on Wednesday

1] Tata Power: Sell at ₹434, target ₹420, stop loss ₹445;

2] REC: Sell at ₹509, target ₹490, stop loss ₹528; and

3] Poly Medicure: Buy at ₹2,573, target ₹2,800, stop loss ₹2,500.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.