Buy or sell: Vaishali Parekh recommends three stocks to buy today — 12th July

Buy or sell stocks today: Indian market will be dictated by the Q1 earnings of major IT firms like Tata Consultancy Services (TCS) and HCL Tech on Wednesday. The market's tone is expected to be positive, however, volatility may occur after the tech players' earnings as the IT industry is likely in for a lackluster first quarter for FY24. In the previous session, markets ended on a positive note, however, resistance was seen as Nifty failed to surpass the immediate hurdle at the record high. Nevertheless, indices outperformed on a broader scale during the July 11th session.

On Tuesday, Sensex ended at 65,617.84, up by 273.67 points or 0.42%. While Nifty 50 ended at 19,439.40 higher by 83.50 points or 0.43%. Consumer durables, auto, healthcare, IT, capital goods, and oil & gas stocks were among the top gainers. While banking, metal, and financials were top laggards. Midcap and small-cap stocks gained traction as well.

Also, FIIs inflow continued for the tenth consecutive day on Tuesday to the tune of ₹1,197.38 crore in Indian stocks. However, DIIs showed dull demand with an outflow of a meager ₹7.25 crore.

Intraday trading strategy for Wednesday:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "Nifty after the decent gains witnessed in the last 4 sessions was subjected to some volatility resisting near 19430 zone with some mixed trend overall to form a Doji candle on the daily chart but closed in the green gaining some odd 66 points. The index has near-term support at around 19250 levels with the major crucial support lying near 18900-19000 zone whereas on the upside the initial targets is set around 19800-19900 levels."

Meanwhile, in regards to Bank Nifty, Parekh said that the index, after the decent rise from 43700 zone, has witnessed some fluctuations forming a Doji pattern on the daily chart finding resistance near 45650 zone but with overall bias maintained positive has still further upside potential in the coming sessions.

Bank Nifty has the near-term support near 44600 levels while on the upside has potential to go further till 46200-46400 zone. The support for the day is seen at 19300 levels while the resistance is seen at 19550 levels. BankNifty would have the daily range of 45000-45700 levels, as per Parekh.

Stocks to buy today

1. Buy Federal Bank at ₹132 with a stop loss of ₹130 for a target price of ₹137.

2. Buy Century Textiles at ₹878 with a stop loss of ₹867 for a target price of ₹910.

3. Buy AU Small Finance Bank at ₹777 with a stop loss of ₹768 for a target price of ₹804.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.