Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 7

Buy or sell stocks: The Indian stock market tanked on Monday, January 6, as reports of a new virus outbreak in China spooked investors, fueling a heavy selling session. The Nifty 50 index closed 1.62 per cent lower at 23,616.05 points, compared to 24,004.75 points at the previous stock market close.

The BSE Sensex index closed 1.59 per cent lower at 77,964.99 points after Monday's trading session compared to 79,223.11 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 formed a big bearish candle on the daily chart, breaking below the important 200-period MA at 23,900 levels, with the bias turning very weak. Parekh estimates the Nifty 50 Spot index to find support at 23,400 points and face resistance at 23,800 points. The Bank Nifty index will likely move in the 49,300 to 50,400 range.

Parekh recommended three buy-or-sell stocks for Tuesday: Kopran Ltd., Metropolis Healthcare Ltd., and National Aluminium Co. Ltd. 

Stock market today

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty tanked significantly, losing almost 400 points to end near 23,600 zone, with a big bearish candle formation on the daily chart, breaking below the important 200-period MA at 23,900 levels, with bias and sentiment turning very weak.”

“The index is now precariously placed, with the near-term support of 23,500-level at threat. The crucial support at the 23,300-zone needs to be sustained, failing which panic selling among the market players may be triggered,” said the stock market expert.

“Bank Nifty witnessed heavy profit booking as the day progressed and has breached below the significant support zone of the 200-period MA at 50,700 levels. It has arrived near the important support zone of 49,700 levels, where, on previous three occasions, it had indicated a positive reversal. A decisive breach below 40,700 zone shall invite for fresh intensified selling pressure with the overall trend turning bearish, and with 48,500 level positioned as the next important support,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,400 points and resistance at 23,800 points. The Bank Nifty index would have a daily range of 49,300 to 50,400. 

Buy or sell stocks by Vaishali Parekh 

1. Kopran Ltd. (KOPRAN): Buy at ₹215; Target at ₹230; Stop Loss at ₹208. 

2. Metropolis Healthcare Ltd. (METROPOLIS): Buy at ₹2,038; Target at ₹2,150; Stop Loss at ₹1,970. 

3. National Aluminium Co. Ltd. (NATIONALUM): Buy at ₹200; Target at ₹215; Stop Loss at ₹192. 

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.