Home / Markets / Stock Markets /  Buy or sell: Vaishali Parekh recommends 2 stocks to buy today — Sept 27

Tracking weak global cues, Indian markets faced sharp selling pressure on Monday. Both benchmarks Sensex and Nifty 50 shed nearly 2% each. Auto and banking stocks took lead on the bears' bandwagon. While IT stocks dodged the market's bloodbath narrowly on the back of a weak rupee. The local currency crossed a fresh low against the dollar which touched a 22-years high. Foreign investors carried their biggest selling in the current month. Overall, markets are expected to be vulnerable amidst aggressive rate hikes by central banks and fears of a recession in major economies. On Tuesday, Nifty 50 is seen to find support at around 16,800 while resistance can be around 17,200. Bank Nifty is likely to range between 38k to 39k levels. Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher has recommended buying two stocks on September 27.

On September 26, Sensex shed 953.70 points or 1.64% to end at 57,145.22. During the day, overall, the 30-scrip benchmark slipped by at least 1,060.68 points.

Coming to Nifty 50, the benchmark settled at 17,016.30 lower by 311.05 points or 1.8%. The 50-scrip benchmark slipped by 349.05 points during the day. Bank Nifty declined by 930 points to close at 38,616.25.

A broad-based selloff was recorded across markets with auto and banking stocks taking the most beating. Metal stocks too faced a heavy selloff. IT sectoral indices edged higher as the rupee clocked a fresh all-time low of 81.6 against the US dollar. The market cap of BSE-listed firms was at 2,70,11,460.11 crore by end of September 26 -- lower by 6,53,106.68 crore from last week Friday's print of 2,76,64,566.79 crore.

Meanwhile, foreign investors (FIIs) outflow stood at 5,101.3 crore on September 26. This is the highest selling by FIIs in the current month.

Investors will place their bets with a focus on RBI's monetary policy. The six-member MPC is scheduled to begin its 3-day monetary policy meeting from September 28 to 30. The policy outcome will be announced on Friday.

In the last three policies, RBI has hiked the policy repo rate by 140 basis points or 1.4%. Currently, the repo rate stands at 5.4%. In the September policy, expectations of a fourth hike in the range of 35-50 basis points are on cards.

According to Parekh, Nifty on the daily chart has indicated further weakness breaching the significant 50EMA level of 17350 zone and further retesting the 17000 landmark which would be the crucial support zone also where the significant 200DMA lies. A decisive breach below 200DMA would intensify the selling pressure with next major support level visible near 16600 zone and with BankNifty also tanking almost 1000 points for the second consecutive session has indicated weakness with major frontline banking stocks switching over to sell mode from their peak levels.

"The support for the day is seen at 16800 while the resistance would be at 17200. BankNifty would have the daily range of 38000-39000 levels," Parekh added for September 27 trading session.

Parekh expects Nifty Spot Index to find support between 16800/16750 with resistance between 17200/17250. While she sees Bank Nifty Spot Index may find support around 38000/37950 with a resistance of between 39000/39050 on September 27.

The Prabhudas Lilladher technical head recommends buying on the below two stocks:

BUY Pidilite Industries at 2,802 with a stop loss of 2,760 for a target of 2,870

BUY HCL Tech at 906 with a stop loss of 880 with a target of 950

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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