Buy or sell stocks: The key benchmark indices of the ended on a strong note, with the Nifty50 comfortably crossing the 25,000 mark on October 6, reaffirming the prevailing bullish sentiment. Domestic markets extended their winning streak for the third consecutive session, buoyed by firm global cues and renewed optimism ahead of the Q2 earnings season. Positive expectations around robust credit growth and stable lending margins, particularly within the financial space, further underpinned market momentum. At the close, the Sensex gained 582.95 points or 0.72% to settle at 81,790.12, while the Nifty 50 index rose 183.40 points or 0.74% to end at 25,077.65.
Sectorally, the IT index outperformed, gaining 2%, followed by healthcare and private banks, each up 1.2%. Oil & gas, as well as PSU banks, added 0.7% and 0.4%, respectively. In contrast, metal, media, and FMCG indices witnessed mild profit-taking, slipping 0.2%–0.9%. On the broader market front, the Midcap index advanced 0.89%, and the Small-cap index also closed firm with gains of 0.28%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has improved as the Nifty 50 index has decisively broken above the 50-day Exponential Moving Average (DEMA) resistance, placed at 24,900. The key benchmark index has regained the 25,000 level and is facing resistance at the 25,250 to 25,300 levels. Following a decisive breakout above this hurdle, a fresh upside bias is expected on Dalal Street.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index, continued with the positive move further ahead with a bullish candle formation on the daily chart moving past the significant 50-DEMA at 24,900 zone decisively to improve the bias and closed the session above the 25,000 level, which was important with respect to sentiment which is beginning to turn optimistic from here on. The index, as mentioned earlier, a decisive move above the near-term hurdle of 25,250 level shall further establish conviction and clarity to anticipate a further rise in the coming days with the next target of 25,700 level achievable.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index witnessed a robust move to close above the 56,000-zone, indicating a breakout above the neckline of the Inverted Head & Shoulder pattern at the 55,700 level to improve the bias and trigger for a fresh upward move having targets of 57,700 and 58,500 levels in the coming days. The RSI is on the rise, indicating strength, and with the bias and sentiment getting better in the last three sessions, one can anticipate further gains soon, with the 55,000 zone positioned as the near-term support.”
Parekh stated that immediate support for the Nifty 50 index is located at 24,950, while the resistance level is at 25,300. The Bank Nifty is expected to have a daily range of 55,700 to 56,800.
Vaishali Parekh’s stock recommendations today
Regarding , Vaishali Parekh recommended three for today: IDFC First Bank, M&M Financial Services, and Graphite India.
1] IDFC First Bank: Buy at ₹71, Target ₹76, Stop Loss ₹79;
2] M&M Financial Services: Buy at ₹284, Target ₹295, Stop Loss ₹278; and
3] Graphite India: Buy at ₹567.55, Target ₹590, Stop Loss ₹555.
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.