Buy or sell stocks: The Indian stock market ended up on Tuesday, January 7, as positive global cues and stabilisation of investor sentiment after news of the sudden virus outbreak in China spurred the benchmark indices to close in the green. The Nifty 50 index closed 0.39 per cent higher at 23,707.90 points, compared to 23,616.05 points at the previous market close.
The BSE Sensex closed 0.30 per cent higher at 78,199.11 points compared to 77,964.99 points at the previous stock market close.
Vaishali Parekh's stocks to buy today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said the Nifty 50 has indicated a pullback after the fall, maintaining the 23,500 zone as a strong support area that needs to be sustained. Parekh estimates the Nifty 50 Spot index to find support at 23,550 points and face resistance at 23,900 points. The Bank Nifty index will likely move in the 49,800 to 50,700 range.
Parekh recommended three buy-or-sell stocks for Wednesday: Larsen and Toubro Ltd (L&T), HDFC Life Insurance Company, and IndusInd Bank.
Stock market today
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty has indicated a pullback after the huge erosion witnessed in the previous session. It is maintaining the 23,500 levels as a strong support zone, which needs to be sustained.”
“The index has been hovering between a tight range for a long time and would need to breach above the important 200-period MA at 23,900 level. Thereafter, to trigger a breakout, it would need to cross the resistance barrier of the 50EMA level of 24,180 to establish conviction and anticipate a further rise in the coming days,” said the stock market expert.
“Bank Nifty, once again, has sustained the important support zone of 49,700 levels and would need a decisive close above the significant 200-period MA at 50,700 level to establish some conviction. The overall bias shall improve only after a decisive breach above the 50EMA zone of 51,700 levels is confirmed. The overall bias with a cautiously positive approach has been maintained, and we expect some revival in the coming sessions and gain strength for further rise in the coming days,” said Parekh.
Parekh said that the Nifty 50 Spot for today has support at 23,550 points and resistance at 23,900 points. The Bank Nifty index would have a daily range of 49,800 to 50,700.
Buy or sell stocks by Vaishali Parekh
1. Larsen and Toubro: Buy at ₹3,645; Target at ₹3,750; Stop Loss at ₹3,580.
2. HDFC Life Insurance Company: Buy at ₹620; Target at ₹650; Stop Loss at ₹600.
3. IndusInd Bank: Buy at ₹980; Target at ₹1,000; Stop Loss at ₹965.
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.
