Whether you should buy or sell equities, the Indian stock market ended the day higher. Both the Nifty and Bank Nifty indices registered weekly gains of more than 1.35 percent during a week that was cut short by two stock market holidays, while the 30-company BSE Sensex index posted a weekly gain of 1.42 percent. Even if the advance decrease ratio was favourable at 2.01:1, broad market indices increased more than the Nifty.
Monday stock market strategy
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, the top band of the descending channel pattern at 17,650 levels is currently acting as resistance for the Nifty. The 50-stock index would need to decisively break through this resistance, according to Prabhudas Lilladher’s analyst, in order to signify a breakout from the channel. Vaishali Parekh gave three intraday stock recommendations for today, recommending REC, Voltas, and Mahindra & Mahindra as three day trading companies to buy (M&M).
On the Nifty’s outlook today, Vaishali Parekh stated, “More advances were made by Nifty, but it encountered resistance close to the 17650 zone, which is the top band of the descending channel pattern on the daily chart. A clear break above this zone would signify a breakout from the channel. The 17200 zone continues to provide strong support, and the index’s short-term upside potential is around the 18000 level, with the intermediate 17800 acting as a crucially important zone.”
“After the conclusion of the RBI policy, Bank Nifty recovered from its initial mildly negative beginning and rose as high as 41270 before encountering resistance close to the long-term falling trendline and seeing profit taking, ultimately ending near 41000 levels. The index has a critical support area near the 50EMA level of 40600, and an upward move would take it to its next short-term goal of 41800 levels with a clear breach above that area “Parekh threw in.
Meanwhile, according to Vaishali Parekh, the level of support for the Nifty today is 17,450, while the level of resistance is 17,750. The daily range for Bank Nifty would be between 40,600 and 41,500 points.
stock picks for today
As previously reported, Prabhudas Lilladher’s Vaishali Parekh has suggested three day trading stocks for today. Below are detailed details on those intraday equities:
1] Buy at 118.75, objective 122, stop loss 117, according to the REC;
2] Purchase Voltas at $830; set a target price of $857; and
3] M&M: Buy at 1171, goal is 1205, and stop loss is 1154.
Disclaimer: Currency Veda does not endorse the opinions or suggestions expressed above by specific analysts or brokerage firms. Before making any financial decisions, we suggest investors to consult with licenced professionals.