
Buy or sell stocks: The key benchmark indices of the Indian stock market extended their losing streak to a fifth consecutive session on September 25, with the Nifty breaching the 24,900 level as persistent profit-taking, continuous foreign fund withdrawals, and uncertainty around US–India trade negotiations fuelled concerns of a potential Q2 GDP slowdown. At the close, the Sensex fell 555.95 points, or 0.68%, to 81,159.68, while the Nifty 50 index slipped 166.05 points, or 0.66%, to settle at 24,890.85. Sentiment was further pressured by a firming US dollar and rising crude oil prices, which amplified worries over fiscal strain and the likelihood of further foreign capital outflows.
On the sectoral front, metals edged up 0.22%, emerging as the lone gainer. At the same time, consumer durables, auto, power, IT, and realty indices each shed around 1% to 1.6% amid broad-based selling. The Midcap index dropped 0.64%, and the Small cap index eased 0.57%, reflecting continued weakness across the broader market.
Vaishalai Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes Indian stock market sentiment has turned cautious as the Nifty 50 index has slipped below 25,000 and came close to its crucial support level at 24,900. The Prabhudas Lilladher expert said there can be panic selling once the key benchmark index slides below this support.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, "The Nifty 50 index, has slipped significantly for the 5th consecutive sessions losing almost 600 points from the peak made near 25450 zone breaching below the important support positioned near the confluence of 50EMA and 100 period SMA at 24900 level and the overall bias has turned into a cautious approach as of now. With the sentiment shaken, the index would need a revival in the coming days, failing which it can slide further towards our next major and crucial support zone lying near the 24500 level, below which the overall trend would turn negative."
On the outlook of the Bank Nifty index, Parekh said, "The Bank Nifty index, witnessed a gradual slide to move below the 55,000 zone with the overall bias having no clear direction and with sluggish movement visible, the index needs to pick momentum and move past the 55,800 zone to improve the sentiment and thereafter, expect for fresh positive move in the coming days. The index would have the important 54,800-55,000 support band, which needs to be sustained to maintain the overall bias intact, failing which it can slip further to the 53,600 zone with bias weakening further."
Parekh said that the immediate support for the Nifty 50 index is at 24,750, while the resistance is at 25,200. The Bank Nifty would have a daily range of 54,500-55,600.
Regarding stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks: PNB, HFCL, and TCS.
1] PNB: Buy at ₹111, Target ₹116, Stop Loss ₹108;
2] HFCL: Buy at ₹77, Target ₹83, Stop Loss ₹75; and
3] TCS: Sell at ₹3000, Target ₹2800, Stop Loss ₹3050.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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