Buy or sell stocks: Snapping their four-day losing run, the Indian stock market‘s benchmark indices — the Sensex and the Nifty 50 — gained on Tuesday, July 15, as a decline in retail inflation to a more than six-year low raised bets of further rate cuts by the Reserve Bank of India (RBI).

Domestic retail inflation slowed to 2.10% in June, near the lower range of the Reserve Bank of India’s tolerance band, as food prices continued to ease. Analysts expect another 25-50 bps rate cuts in the upcoming meetings.

The 30-share BSE Sensex climbed 317 points or 0.39% to settle at 82,571 after shedding over 1,450 points in the last four sessions. Its NSE counterpart, Nifty 50, edged higher by 113.50 points or 0.45% to 25,196. The 50-pack Nifty had lost 440 points in the last four days.

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The rally in the broader market beat benchmark indices, as the BSE smallcap index climbed 0.95% and the midcap index jumped 0.83%. Meanwhile, in the sectoral space, all 13 major sectors on the NSE settled in the green.

Stock market today

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes both Nifty 50 and Bank Nifty are poised for further gains in the coming days as the indices sustain above key technical levels. According to Parekh, a decisive breach above the 25650 zone shall trigger fresh momentum in the coming days.

Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, Nifty has indicated a decent revival after taking support near 25,000 zone with a higher bottom formation pattern on the daily chart to improve the bias anticipating for further rise in the coming days. The important 50EMA zone at 24900 level has been sustained with the overall bias maintained positive and with the overall trend in an ascending mode, one can expect for a positive trend reversal with near-term targets of 25500 and 25700 levels, with the important 50EMA zone at 24900 level as the crucial support area which needs to be sustained as of now.”

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Volatility shall continue for the month and, on the upside, as mentioned earlier, only a decisive breach above the 25650 zone shall trigger fresh upward movement in the coming days, Parekh said.

Commenting on the outlook for Nifty Bank, the Prabhudas Lilladher analyst said, “Bank Nifty has sustained above the important support near 56,600 level since the last 3 sessions and indicating a pullback to close just above the 57,000 zone has once again improved the bias to anticipate for further upward move in the coming days. The index would continue to have the important support positioned near the 56000 level and at the same time, on the upside, a decisive breach above the resistance zone of 57600 level, shall thereafter, trigger for fresh higher targets of 58500 and 60000 levels in the coming days.”

The support for Nifty is seen at 25,000 levels while the resistance is seen at 25,400 levels; as for Bank Nifty, the daily range of 56600-57700 levels, the analyst added.

Vaishali Parekh’s stock recommendations

Regarding stocks to buy today, Vaishali Parekh recommended buying these three stocks: City Union Bank, Varun Beverages and Bodal Chemicals.

1. City Union Bank: Buy at ₹218; Target price at ₹228; Stop loss at ₹214

2. Varun Beverages: Buy at ₹469.80; Target price at ₹494; Stop loss at ₹460

3. Bodal Chemicals: Buy at ₹76.88; Target price at ₹81; Stop loss at ₹75

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.