Buy or sell stocks: The Indian stock markets clocked in gains on Tuesday, February 4, despite weak quarterly earnings, foreign capital outflows, and concerns over Donald Trump's trade policy. The Nifty 50 index closed 1.62 per cent higher at 23,739.25 points, compared to 23,361.05 points in the previous market session.
The BSE Sensex closed 1.81 per cent higher at 78,583.81 points, compared to 77,186.74 points in the previous market session.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said the Nifty 50 index indicated a bullish candle and closed above the resistance barrier. The index is expected to move upwards in the upcoming days due to improved bias and sentiment. Parekh estimates the Nifty 50 Spot index to find support at 23,600 points and face resistance at 24,000 points. The Bank Nifty index will likely move in the 49,700 to 50,700 range.
Parekh recommended three buy-or-sell stocks for Wednesday: Zydus Lifesciences Ltd, Multi Commodity Exchange of India Ltd, and Can Fin Homes Ltd.
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “After a long time, Nifty has indicated a strong bullish candle to close above the resistance barrier of 23,500 decisively to improve the bias and sentiment. Anticipate fresh upward move in the coming days.”
“The index has moved past the significant 50EMA zone of 23,660 level to strengthen the trend and has opened the targets of 24,000 and 24,600 levels on the upside. The broader markets have also shown active participation to support the indices with strength indicated,” said the stock market expert.
“Bank Nifty has indicated a strong move past the 50,000 zone to improve the overall bias. A decisive move past the significant 200 period MA at 50,850 levels shall further strengthen the trend to anticipate a further rise in the coming days, with targets of 52,400 and 53,300 levels open. The index would have the immediate support of 49,400 level. With frontline banking stocks beginning to gain momentum, the overall sentiment looks positive,” said Parekh.
Parekh said that the Nifty 50 Spot for today has support at 23,600 points and resistance at 24,000 points. The Bank Nifty index would have a daily range of 49,700 to 50,700.
1. Zydus Lifesciences Ltd. (ZYDUSLIFE): Buy at ₹974; Target at ₹1,010; Stop Loss at ₹960.
2. Multi Commodity Exchange of India Ltd (MCX): Buy at ₹5,850; Target at ₹6,200; Stop Loss at ₹5,650.
3. Can Fin Homes Ltd (CANFINHOME): Buy at ₹664; Target at ₹680; Stop Loss at ₹640.
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 making any investment decisions.
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