Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 3

Buy or sell stocks: The Indian stock market indices continued their upward trend for the second consecutive day, fueled by the IT and Auto sectors. The Nifty 50 closed 1.88 per cent higher at 24,188.65 points, compared to 23,742.90 points at the previous market close.

The BSE Sensex index closed 1.83 per cent higher at 79,943.71 points on Thursday, compared to 78,507.41 points at the previous market close. 

Vaishali Parekh's stocks to buy today

Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, says that after a long wait, the Nifty breached the 200-period MA, overcoming tough resistance in the 23,900 zone. With the frontline stocks gaining momentum, the Nifty is expected to rise further in the upcoming days. Parekh estimates the Nifty 50 Spot index to find support at 24,000 points and face resistance at 24,400 points. The Bank Nifty index will likely move in the 51,200 to 52,200 range.

Parekh recommended three buy-or-sell stocks for Friday: Tata Consumer Products Ltd., Samvardhana Motherson International Ltd., and Chennai Petroleum Corporation Ltd. 

Stock market today

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty index after a long wait has breached above the significant 200-period MA at 23,900 zon,e which was acting as a tough resistance barrier. It has closed above the 24,000 level to improve the bias and sentiment significantly.”

“With most of the frontline stocks gaining momentum, we anticipate a further rise in the coming days with the index having the next target of 24,800 level, with the important 50EMA-level positioned at the 24,220 zone. A decisive breach is expected,” said the stock market expert.

“Bank Nifty gained momentum with a positive bullish candle formation to move past the 51,500 zone decisively and further ahead, a close above the important 50EMA zone at 51,900 levels shall trigger a breakout to establish conviction for further rise. With overall sentiment visibly improving, we anticipate the index to achieve the targets of 52,500 and 53,800 levels in the coming days. The 200-period MA at 50,600-level shall remain the important and crucial support zone for the index as of now,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 24,000 points and resistance at 24,400 points. The Bank Nifty index would have a daily range of 51,200 to 52,200. 

Buy or sell stocks by Vaishali Parekh 

1. Tata Consumer Products Ltd. (TATACONSUM): Buy at ₹927; Target at ₹960; Stop Loss at ₹900. 

2. Samvardhana Motherson International Ltd. (MOTHERSON): Buy at ₹158; Target at ₹165; Stop Loss at ₹153. 

3. Chennai Petroleum Corporation Ltd. (CHENNPETRO): Buy at ₹632; Target at ₹680; Stop Loss at ₹600. 

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.