Buy or sell stocks: The key benchmark indices of the Indian stock market closed on a subdued note on September 24th, with the Nifty 50 index settling near 25,050 on profit booking. Index is seen down for the 4th session in a row. IT counters underperformed, pressured by H-1B fee escalation, while ongoing US trade frictions and softening global macros weighed on risk appetite, keeping market participants in a defensive posture. At close, the Sensex was down 386.47 points or 0.47 per cent at 81,715.63, and the Nifty was down 112.60 points or 0.45 per cent at 25,056.90.
Barring FMCG, all major sectoral indices closed in negative territory, with auto, IT, media, metals, oil & gas, and realty witnessing broad-based profit booking, shedding 0.5%–2.5%. The midcap index slipped nearly 1%, while the small-cap index declined around 0.7%, reflecting broad-based weakness.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious as the Nifty 50 index has slipped close to 25,000 after logging losses in the last four straight sessions. The key benchmark index has crucial support at 24,900.
Speaking on the outlook of the Indian stock market, Vaishali Parekh said, “The Nifty 50 index continues with the gradual downward slide for the 4th consecutive sessions with bias getting weak and has arrived near the 25,000 zone with 24900 level positioned as the important support zone, which is where the confluence of the significant 50-DEMA and 100 period SMA lies. With the broader markets also cooling off from the recent peak with profit booking, they arrived near the important 50-DEMA zone, where one can expect some revival, a trend reversal and thereafter, anticipate a fresh upward move during the festive season by the end of the month.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index shed some gains with profit booking witnessed and has just moved below the 50-DEMA zone at 55,200 level with bias slightly shaken. As mentioned earlier, with the Inverted head and shoulder pattern still in process on the daily chart, a decisive move above the neckline zone of 55,900 level shall trigger a fresh upward move in the coming days, provided the 54,800-55,000 support band is sustained to maintain the overall bias intact.”
Parekh said that the immediate support for the Nifty 50 index is at 24,900, while the resistance is at 25,300. The Bank Nifty would have a daily range of 54,700-55,700.
Vaishali Parekh’s stock recommendations today
Regarding intraday stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks: Hindustan Oil Exploration Company, Oil India, and Prism Johnson.
1] Hindustan Oil Exploration Company: Buy at ₹177, Target ₹183, Stop Loss ₹173;
2] Oil India: Buy at ₹406, Target ₹412, Stop Loss ₹400; and
3] Prism Johnson: Buy at ₹165, Target ₹180, Stop Loss ₹160.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.