Buy or sell stocks: The Indian stock market witnessed strong buying in the first half of Tuesday's session. However, after reports of Iran's ceasefire violation, Dalal Street indices pared most of their gains and ended flat. The Nifty 50 index finished 72 points higher at 25,044, the BSE Sensex ended 158 points higher at 82,055, and the Bank Nifty index gained 402 points and closed at 56,461.
Leading the charge among the top performers on the Nifty were Adani Ports, JIOFIN, and Shriram Finance. Conversely, ONGC, Power Grid, and IndusInd Bank ended the session as major losers. Trading volumes on the NSE cash market were sharply higher by 23% compared to yesterday, indicating significant activity amidst the volatility.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market is following the Israel-Iran news. The Prabhudas Lilladher expert said the Nifty 50 is still above 25,000, which signals positive sentiments with a cautious approach on Dalal Street.
Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, "The Nifty 50 index indicated a strong opening session and touched the 25,300 zone but fizzled out in the second half with the bias and sentiment still precariously placed amid the geo-political tensions looming around. The index would need clarity and conviction for the upward move, and a decisive breach above the 25,250 zones is needed to trigger a further fresh upward move in the coming days. On the downside, as mentioned earlier, the 50-EMA level at the 24,500 zone would be the crucial support."
"The Bank Nifty index once again moved past the 56,200 zone to hit the high level at 56,860 zone but could not sustain for long with profit booking seen and ended near the 56,500 level with more conviction and stability awaited. The index needs to sustain above the near-term support of 55,400 level to maintain the bias intact, and on the upside, a decisive breach above the 57,000 zone shall trigger a fresh upward move in the coming days," said Parekh.
Parekh said that support for Nifty today is placed at 24,800, while the resistance is at 25,250. The Bank Nifty would have a daily range of 56,000 to 57,000.
Regarding stocks to buy today, Vaishali Parekh recommended buying these three buy-or-sell stocks: KPI Green Energy, DCW, and Ashoka Buildcon.
1] KPI Green Energy: Buy at ₹493, Target ₹515, Stop Loss ₹482;
2] DCW: Buy at ₹75.90, Target ₹79, Stop Loss ₹74; and
3] Ashoka Buildcon: Buy at ₹207.20, Target ₹217, Stop Loss ₹203.
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 making any investment decisions.
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