Buy or sell stocks for today: After the RBI's announcement to keep the repo rate unchanged at 6.5 percent, banking stocks witnessed a heavy selloff that dragged the key benchmark indices of the Indian stock market. The Nifty 50 index lost 212 points and closed at 21,717 level, the BSE Sensex crashed 723 points and ended at 71,428 mark whereas the Bank Nifty index nosedived 806 points and ended at 45,012 level.
Cash market volumes on the NSE rose to ₹1.47 lakh crore. The mid-cap index ended marginally positive even as the advance-decline ratio fell to 0.60:1.
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher believes that stock market bias has turned a little bit weak after the Nifty 50 index fell below the 21,700 mark on Thursday. The Prabhudas Lilladher expert maintained that the 50-stock index needs to close above 221,800 to improve the market bias. Vaishali went on to add that the Bank Nifty index has fallen below the 50-DEMA of 46,150 zones and closed near 45,000 levels — 20-DEMA zone. Parekh said that the Bank Nifty index has crucial support now placed at 44,500 mark.
On stocks to buy today, Vaishali Parekh recommended three intraday stocks for today — Voltas, Tata Communications, and Shankara Building Products.
On the outlook for the Nifty 50 index, Vaishali Parekh said, "Nifty once again found resistance near the 22,000-zone resistance and slipped down with profit booking seen to move below the 21,700 zone during the intraday session to turn the bias a little bit weak. The index would have the next major support at the 21,500 zone which needs to be sustained and upside for the bias to improve, at least it needs to close above the 21,800 zone to improve the bias overall."
On the outlook for the Bank Nifty today, Parekh said, "Bank Nifty witnessed a steep slide on the daily chart resisting near the 50EMA level of 46150 zone and ended on a weak note to close near the 45000 level of the significant 200 period MA level. The index would have the major support of 44500 zone below which the trend would turn weak and once confirmed, would anticipate for a further slide in the coming days."
Parekh went on to add that the immediate support for Nifty today is placed at 21,600 while the resistance is seen at 21,850 level. Bank Nifty would have a daily range of 44,500 to 45,500 levels.
1] Voltas: Buy at ₹1064.65, target ₹1110, stop loss ₹1045;
2] Tata Communications: Buy at ₹1759.85, target ₹1830, stop loss ₹1725; and
3] Shankara Building Products: Buy at ₹766.60, target ₹805, stop loss ₹753.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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