Buy or sell stocks: The key benchmark indices of the ended the truncated week on a positive note, posting gains of nearly 1%, and marking their second consecutive day of advances on Friday. The Sensex closed 224 points higher, or 0.28%, at 81,207, while the Nifty 50 added 58 points, or 0.23%, to settle at 24,894. Overall market breadth remained positive. Metal stocks led the rally throughout the week, with the Nifty Metal index surging nearly 4% during the week. The sector’s strong performance was supported by multiple factors, including a weaker US dollar index, reports that the European Union might raise steel import tariffs to as much as 50%, an improved demand outlook, and China’s move to curb steel production.
PSU bank stocks were another major contributor, with the Nifty PSU Bank index climbing over 4% for the week. In Friday’s session, metals, PSU banks, and consumer durables led the gains, each rising between 1% and 2%. Meanwhile, the auto, real estate, and healthcare sectors experienced marginal declines, ranging from 0.1% to 0.2%. The broader market continued its recovery, with the Nifty Midcap 100 rising 0.83% and the Nifty Small Cap 100 up 0.69%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market bias is cautious despite a decent pullback rally on Friday. However, it would continue to remain a relief rally until the Nifty 50 index decisively breaks above the 50-day EMA resistance, placed at 24,900. On the lower side, the 50-stock index is forming a strong base at 24,500. A bullish or bearish trend can be assumed on the breakage of either side of this range.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index, after having a weak opening, gradually picked up to close on a marginally positive note, closing near the 24,900 zone to continue with the upward move, retesting the important 50-DEMA at the 24,900 level and would anticipate further rise in the coming days. The index maintaining the important support at 24,500 zone, is expected to gain further with the RSI improving, indicating and as mentioned earlier, a decisive move above the near-term hurdle of 25,250 level shall further establish conviction and clarity for further rise.”
On the outlook of the Bank Nifty today, Parekh said, “The Bank Nifty index, continued with the positive move gaining almost 250 points and has maintained above the important 50EMA at 55,150 level to improve the bias and has reached the 55,600 level, which is the neckline zone of the Inverted Head and Shoulder pattern on the daily chart above which we can expect for a breakout and further rise can be anticipated with upside target of 58,000 to 58,500 levels expected. The important support would be maintained near the 54,400-54,500 zone, which needs to be sustained as of now.”
Vaishali Parekh of Prabhudas Lilladher stated that immediate support for the Nifty 50 index is located at 24,800, while resistance is seen at 25,200. The Bank Nifty is expected to have a daily range of 55,200-56,200.
Vaishali Parekh’s stock recommendations today
Regarding , Vaishali Parekh recommended three for today: HFCL, Mphasis, and Rain Industries.
1] HFCL: Buy at ₹75.85, Target ₹81, Stop Loss ₹74;
2] Mphasis: Buy at ₹2736, Target ₹2820, Stop Loss ₹2695; and
3] Rain Industries: Buy at ₹132.95, Target ₹141, Stop Loss ₹130.
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.