Buy or sell: Vaishali Parekh recommends buying these three stocks today - January 17

Stock Market News: Domestic benchmark equity indices Nifty 50 and Sensex snapped their five-day winning streak on Tuesday's trading session due to profit-booking in Information technology (IT) and oil stocks, coupled with negative global trends.

After gaining 7.1% in the previous two days on the strength of better-than-expected earnings from the top four software companies, IT stocks fell by 1.28%. Among the top five Nifty 50 losers were HCLTech, Wipro, and Infosys, which had a fall ranging from 1.2% to 2.5%.

The domestic market had a short rebound throughout the session, which helped the benchmarks reach fresh record highs, but it spent the majority of the day in negative territory on Tuesday.

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The S&P BSE Sensex dropped 0.27% to 73,128.77, while the Nifty 50 fell 0.29% to 22,032.30.

The BSE SmallCap and MidCap indexes had declines of 0.43% and 0.31%, respectively. Nifty Bank, dropped by 0.10% to 48,107.75.

"The broad market exhibited profit booking following a good performance by the IT sector amid weak global cues. Investors are contemplating whether the current euphoria in markets has gone farfetched, especially with elevated domestic valuations in mid & small caps. FII flows are mixed due to a lack of fresh triggers. Oil prices stayed firm amid undeterred geopolitical tensions. The latest IIP growth signals near-term softness," said Vinod Nair, Head of Research, Geojit Financial Services.

Also Read: Stock market today: Nifty 50, Sensex snap 5-day winning streak on profit booking

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, to put it straight, wary investors hit pause button amidst overbought technical conditions. The positive takeaway from Tuesday’s trading session was that Nifty 50 scaled a new all-time-high is now at 22,124.15 mark.

"We suspect, bullish consolidation should be the preferred theme as the bulls may regroup and regain mojo post a short-term minor correction as macros remain favorable. From a technical perspective, Nifty 50's aggressive upside targets are still seen at the psychological 22,500 mark. The line in the sand is at Nifty 50 make-or-break support at 21,507 mark.

Also Read: Stocks to Watch: HDFC Bank, Piramal Pharma, ICICI Securities, IREDA

Day trade guide by Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher for Wednesday's session:

Nifty 50 & Bank Nifty View

Parekh said the Nifty 50 took a breather, resisting near the 22,120 zone for the second session after witnessing a decent rise from 21,450 levels overall, maintaining a positive bias with volatility anticipated. The near-term support visible from current levels is the 21,700 zone, which is the lower band of the ascending channel pattern on the daily chart, and a decisive breach below will weaken the bias to some extent.

Bank Nifty, also witnessing resistance near the 48,300 zone, remained rangebound, closing on a flat note with an overall bias maintained positive till the levels of 47,000 are sustained, according to Parekh.

"The index would have a resistance barrier near 48,600 levels, which needs to be breached for further continuation of the upward move. The support for the day is seen at 21,900, while the resistance is seen at 22,200. BankNifty would have a daily range of 47,700–48,500 levels," said Parekh.

Vaishali recommends buying the following stocks:

Buy NMDC Ltd at ₹212.75 with a stoploss of ₹208 and a target price of ₹223.

Buy Deepak Fertilisers & Petrochemicals Corporation Ltd at ₹662.55 with a stoploss of ₹652 and a target price of ₹695.

Buy GMR Airports Infrastructure Ltd at ₹84.35 with a stoploss of ₹83 and a target price of ₹88.

Nifty Spot Index

Support – 21,900

Resistance - 22,200

Bank Nifty Spot Index

Support – 47,700

Resistance – 48,500

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision."