Buy or sell: Vaishali Parekh recommends three stocks to buy today — November 18

Buy or sell stocks: The Indian stock market closed in the red on Thursday, November 14, for the sixth consecutive session. The decline slowed down as heavyweight stocks like Reliance Industries and HDFC Bank provided support, preventing a significant drop. The Nifty 50 index closed 0.11 per cent lower at 23,532.70 points, compared to 23,559.05 points in the previous market session.

The BSE Sensex closed 0.14 per cent lower at 77,580.31 points after Thursday's market session, compared to 77,690.95 points at the previous market close. Stock markets were closed on Friday, November 15, due to the Guru Nanak Jayanti holiday. 

Vaishali Parekh's stocks to buy today

Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said the Nifty, forming another lower top formation on the daily chart, has plunged to reach the important 200 period MA at 23,540 zone. The bias is maintained with a very cautious approach. Parekh estimates the Nifty 50 Spot index to find support at 23,400 points and face resistance at 23,700 points. The Bank Nifty index will likely move in the 49,700 to 50,700 range today.

For today, Parekh recommended three buy-or-sell stocks: Indian Hotels Co. Ltd, Biocon Ltd, and DLF Ltd. 

Stock market today

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty forming another lower top formation on the daily chart has plunged to reach the important 200 period MA at 23,540 zone with bias maintained with a very cautious approach and further slide can deteriorate the overall scenario with panic setting in.”

“The index would need to breach above the 23,900-24,000 zone to improve the bias to some extent failing which the next crucial support lies near 22,800 zone, with sentiment getting scary,” said the stock market expert.

“Bank Nifty has tanked this week breaching below the 50,000 zone with bias turning weak and a decisive breach below the important 200 period MA of 49,750 level shall trigger further selling pressure, with next major support lying near 49,000 level of the rising trendline zone. The index would need to breach above the 51,000 level to improve the bias from current situation and thereafter, expect for further rise if conviction is established,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,400 points, while the resistance lies at 23,700 points. The Bank Nifty index would have a daily range of 49,700 to 50,700. 

Buy or sell stocks by Vaishali Parekh 

1. Indian Hotels Co. Ltd. (INDHOTEL): Buy at ₹741; Target at ₹750; Stop Loss at ₹725. 

2. Biocon Ltd. (BIOCON): Buy at ₹335; Target at ₹360; Stop Loss at ₹320. 

3. DLF Ltd. (DLF): Buy at ₹762; Target at ₹785; Stop Loss at ₹740.

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 taking any investment decisions.