Buy or sell: Vaishali Parekh recommends buying in 3 stocks today - 9 August
2 min read 09 Aug 2023, 06:14 AM ISTStock Market News: On Tuesday, Nifty and Sensex end in red as investors remain cautious ahead of RBI's monetary policy and US inflation data.
PremiumStock Market News: Domestic benchmark equity indices Nifty and Sensex ended in red on Tuesday's session as investors continued to stay on caution in light of two significant events, the RBI's monetary policy and the US inflation data due out this week.
The domestic markets' sentiment was also dented due to ongoing foreign fund outflows and a negative trend in Asian and European markets. On Tuesday, foreign institutional investors (FIIs) continued to offload shares of Indian companies worth ₹711.34 crores for the nineth straight session.
On Tuesday, the Nifty 50 index was down 0.13% at 19,570.85 while the S&P BSE Sensex dropped 0.16% to 65,846.50. Mid and smallcaps outperformed the benchmark Sensex. The BSE Midcap index ended with a gain of 0.15% while the Smallcap index rose 0.25%.
Also Read: Market Wrap: Sensex, Nifty falter amid weak global cues; mid, smallcaps outperform
According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, Nifty’s two-day rally was on hold, and its not clear what might restart it. Bank Nifty however ended above dotted lines as Nifty PSU Banks index jumps 3.49%. Amidst volatility, Nifty ended lower and stayed vulnerable.
The positive takeaway from Tuesday’s trade however was that the BSE Midcap and Smallcap indices and Bank Nifty however ended above the dotted lines.
"Investors now anxiously await: US inflation data. The reading will help inform the Federal Reserve’s September interest-rate decision and the path forward from there.
RBI’s interest rate decision by the monetary policy committee (MPC) meeting. The street expects the RBI to hold its repo rate at 6.5% as well as uphold its policy stance," added Tapse.
Day trade guide by Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher for Wednesday's session:
Parekh said Nifty witnessed a rangebound session resisting near the 19,600 zone with another lower top formation pattern in the making on the daily chart with cautious approach maintained once again. A decisive breach above 19,600-19,620 zone shall make way for the next near-term target of 19,800-19,850 zone while failing to sustain the 19,550 zone shall lead to further slide for downside target of 19,300 levels.
Bank Nifty supported the Nifty index with a positive closing session almost touching the 45,000 zone improving the sentiment with major banking stocks like ICICI Bank and Axis Bank indicating positive bias, according to Parekh.
"The index needs to cross the 45,200 zone decisively to get a confirmation for further rise in the coming days whereas on the downside has got the important near-term support at around 44,300 zone which has been maintained as of now. The support for the day is seen at 19,450 levels while the resistance is seen at 19,700 levels. BankNifty would have the daily range of 44,700-45,400 levels," said Parekh.
Vaishali recommends buying the following stocks:
Buy DCX Systems at ₹260 with a stoploss of ₹255 and a target price of ₹273.
Buy Laurus Labs at ₹411.50 with a stoploss of ₹405 and a target price of ₹427.
Buy Sula Vineyards at ₹488 with a stoploss of ₹482 and a target price of ₹510.
Nifty Spot Index
Support – 19450/19400
Resistance - 19700/19750
Bank Nifty Spot Index
Support – 44700/44650
Resistance – 45400/45450
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