Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 6

Buy or sell stocks: The Indian stock market indices closed last week's final trading session on Friday with losses due to profit booking and a strengthening US dollar. Banking, financial services, IT and pharma sectors witnessed losses on January 3. The Nifty 50 index closed 0.76 per cent lower at 24,004.75 points, compared to 24,188.65 points at the previous stock market close.

The BSE Sensex index closed 0.90 per cent lower at 79,223.11 points on Friday, compared to 79,943.71 points at the previous market close. 

Vaishali Parekh's stocks to buy today

Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said the Nifty 50 found resistance near the 24,200 zone after witnessing a strong pullback the previous session. With the bias and sentiment cautiously positive, the index is expected to rise in the coming days. Parekh estimates the Nifty 50 Spot index to find support at 23,800 points and face resistance at 24,250 points. The Bank Nifty index will likely move in the 50,600 to 51,700 range.

Parekh recommended three buy-or-sell stocks for Monday: Britannia Industries Ltd, RBL Bank Ltd, and HDFC Life Insurance Co. Ltd. 

Stock market today

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty found resistance near the important 50EMA zone of 24,200 levels after the strong pullback witnessed in the previous session. With profit booking seen over near the 24,000 zone, and with bias and sentiment cautiously positive, anticipate a further rise in the coming days.”

“The index would have important support near the 200 period MA at 23,900 levels, which needs to be sustained to maintain the overall bias intact. On the upside, we expect the initial target of 24,800 level to be achieved once the 50EMA zone is decisively breached,” said the stock market expert.

“Bank Nifty was subjected to heavy profit booking, erasing the gains witnessed in the last session. slightly weakening the bias. Once again, the 200 period MA, at 50,650 levels, shall be crucial support, which needs to be sustained. On the upside, as mentioned earlier, the index needs to decisively breach the resistance barrier near the 50EMA level of 51,900 to establish conviction. Thereafter, anticipate a further rise in the coming days,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,800 points and resistance at 24,250 points. The Bank Nifty index would have a daily range of 50,600 to 51,700. 

Buy or sell stocks by Vaishali Parekh 

1. Britannia Industries Ltd. (BRITANNIA): Buy at ₹4,836; Target at ₹4,950; Stop Loss at ₹4,750. 

2. RBL Bank Ltd. (RBLBANK): Buy at ₹162; Target at ₹166; Stop Loss at ₹157.

3. HDFC Life Insurance Co. Ltd. (HDFCLIFE): Buy at ₹623; Target at ₹660; Stop Loss at ₹605. 

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.