
Buy or sell stocks: The Indian stock market navigated a highly eventful week characterised by alternating phases of volatility and resilience, ultimately closing the week on a positive note. The key benchmark indices briefly scaled record highs before witnessing profit booking at elevated levels. Global market cues remained supportive, aided by softer US yields, renewed expectations of a US Fed rate cut, and benign crude oil prices that helped temper inflation concerns.
Despite early pressure from a weakening rupee and continued FII outflows, sentiment improved mid-week as robust domestic inflows and increasing confidence in forthcoming Fed policy easing rekindled buying interest, driving a broad-based market rebound. Gains were led by the Pharma, PSU Banks, Media, and IT sectors, while the Realty, Consumer Durables, and Oil & Gas sectors lagged.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment remains positive as long as the Nifty 50 index sustains above 26,000. The 50-stock index had formed a strong base in the 25,800-25,750 band and was poised to reach 26,500. Upon breaking above this level on a closing basis, we can expect the key benchmark index to reach the 27,200 level soon.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index witnessed a range-bound session with overall consolidation visible at the peak zone of 26,200 level with bias and sentiment maintained with an optimistic approach and can expect further rise in the coming days. The index would have the important support near the 25,750-25,800 band, which needs to be sustained, and on the upside, with the undertone maintained strong, we can have fresh upside targets of 26,500 and 27,200 levels in the coming days.”
On the outlook of the Bank Nifty index, Parekh said, "The Bank Nifty index after hitting the record high level and the strong breakout witnessed in the previous session, the index has consolidated near the 59,800 zone with bias maintained intact anticipating for further upward move in the coming days with most of the frontline banking stocks well poised for further rise with most of the technical parameters well placed. The index would have the near-term support positioned near the 58,600 zone and, on the upside, can expect fresh higher targets of 61,400 and 63,500 levels in the coming days, as mentioned earlier."
Parekh stated that immediate support for the Nifty 50 index is located at 26,100, while resistance is seen at 26,400. The Bank Nifty is expected to have a daily range of 59,300-60,400.
Regarding stocks to buy today, Vaishali Parekh recommended three intraday buy-or-sell stocks: Laurus Labs, SRF, and LT Foods.
1] Laurus Labs: Buy at ₹1030, target ₹1060, Stop Loss ₹1005;
2] SRF: Buy at ₹2900, Target ₹3030, Stop Loss ₹2840; and
3] LT Foods: Buy at ₹408, Target ₹423, Stop Loss ₹400.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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