Buy or sell: Vaishali Parekh recommends three stocks to buy today — 5th September

Buy or sell stocks for today: Following strong global market cues on strong US job market buzz, Indian stock market ended higher on Monday. NSE Nifty gained 93 points and closed at 19,528 levels, BSE Sensex went up 240 points and finished at 65,628 mark whereas Bank Nifty index added 142 points and ended at 44,578 levels. Broad market indices rose more than key benchmark indices even as the advance decline ratio was high at 1.69:1.

Intraday trading strategy for Tuesday

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher believes that important bias of the Indian stock market has breached the resistance barrier placed at 19,450. Prabhudas Lilladher expert went on to add that market sentiment may become further bullish once Nifty breaches the hurdle placed at 19,600 levels on closing basis. On stocks to buy today, Vaishali Parekh recommended three intraday stocks for today and those day trading stocks are Samvardhana Motherson, Borosil Renewables and Union Bank of India.

On outlook for Nifty today, Vaishali Parekh said, "Nifty extended the gains further to end above the 19,500 zone with improving bias moving past the resistance barrier of 19,450 levels and further with one more important hurdle of 19,600 zone, if breached decisively, can bring conviction for further movement of the index to re-test the 20,000 landmark. The overall participation from the broader markets is also quite significant to support the benchmark index to maintain a positive approach from here on for further gains."

"Bank Nifty also gained to close above the 44,500 zone but still is hovering within the range for quite some time and would need to breach above the 45,000 zone decisively to establish a conviction for the overall trend to turn positive and anticipate for further rise in the coming days. For the index, the crucial support zone is maintained near 43,600 levels and would need to sustain above this zone for the bias to remain intact," said Parekh.

Parekh went on to add that immediate support for Nifty today is placed at 19,400 levels while the resistance is seen at 19,700 levels. Bank Nifty would have the daily range of 44,200 to 45,000 levels.

Stocks to buy today

1] Samvardhana Motherson: Buy at ₹101.30, target ₹110, stop loss ₹98;

2] Borosil Renewables: Buy at ₹449, target ₹480, stop loss ₹442; and

3] Union Bank of India: Buy at ₹88, target ₹95, stop loss ₹86.

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 taking any investment decisions.