Indian equities continued their downward trend for the fourth consecutive session, influenced by fragile global cues. The Nifty 50 index concluded 68 points lower, resting at 19,674 levels, while the BSE Sensex dipped by 221 points to close at 66,009. Meanwhile, the Bank Nifty index closed 11 points lower at 44,612 levels. Although the small-cap index managed a marginal uptick, the advance-decline ratio improved to 0.99:1.
Intraday Strategy for Monday
As investors brace for another trading week, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, suggests that the sentiment on Dalal Street has further deteriorated following the Nifty 50 index’s dip below the critical 19,700 level on the previous Friday. Parekh warns that if the index breaches the support at 19,600 levels, the Indian stock market could experience more corrective measures.
Parekh recommends three intraday stocks for consideration on Monday: RVNL, Bank of Baroda (BoB), and Schneider Electric.
Market Outlook
Speaking on the outlook for Nifty 50, Parekh commented, “Nifty extended its losses, breaching decisively below the 19,700 zone and touching an intraday low of 19,660. Sentiment remains cautious, with continued profit booking observed in Realty, Metals, and Energy sectors.”
Bank Nifty also witnessed a decline, reaching 44,500 levels during the intraday session, primarily driven by profit booking in HDFC Bank. Parekh notes that the next support lies near 19,600 levels, and a breach of this level could lead to a further decline, with a crucial support at 19,200 levels. She added, “The support for the week is seen at 65,000/19,200, while the resistance is seen at 67,000/20,000. Bank Nifty would have a weekly range of 43,500–45,500 levels.”
Stocks to Buy Today
- RVNL: Parekh suggests buying at ₹166.85, setting a target at ₹180, and implementing a stop loss at ₹158.
- Bank of Baroda: For BoB, she recommends buying at ₹215.40, with a target price of ₹239 and a stop loss set at ₹205.
- Schneider Electric: Finally, Schneider Electric is recommended as a buy at ₹348, with a target of ₹390 and a stop loss at ₹330.
Disclaimer: It’s important to note that the views and recommendations provided above are those of individual analysts or broking companies and do not reflect the opinions of Mint. Investors are encouraged to conduct their own research and seek professional advice when making investment decisions.
Summary:
- Indian stocks continue to slide due to weak global cues, with Nifty 50 closing at 19,674 points and BSE Sensex at 66,009.
- Bank Nifty ended 11 points lower at 44,612, while the small-cap index saw marginal gains.
- Vaishali Parekh of Prabhudas Lilladher warns of further weakness if Nifty breaches the 19,600 support level.
- She recommends three intraday stocks: RVNL, Bank of Baroda, and Schneider Electric.
- Parekh outlines key support and resistance levels for Nifty and Bank Nifty for the week ahead.
