The Indian stock market witnessed a significant rebound, erasing some of the previous day’s losses, following the pledge of support from NDA allies for the formation of a government for the third consecutive term. The Nifty 50 index surged by 735 points, closing at 22,620, while the BSE Sensex climbed by 1,303 points to finish at 74,382. The Bank Nifty index also saw substantial gains, ending 2,126 points higher at 49,054. In the broader market, the mid-cap index outperformed the frontline indices, with the advance-decline ratio rising sharply to 3.49:1.
Vaishali Parekh’s Stock Recommendations
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that the Nifty 50 index has moved above the crucial 50-day Exponential Moving Average (EMA) zone of 22,400. She added that a decisive breach above 22,900 could further enhance the positive sentiment in the Indian stock market. Parekh emphasized that the Bank Nifty index needs to sustain above the significant 50-EMA level of 48,150 to maintain a bullish bias.
On her list of stock recommendations for today, Vaishali Parekh suggested buying three stocks: HDFC Life, ITC, and Coal India.
Stock Market Outlook for Today
Commenting on the outlook for the Nifty today, Parekh stated, “Nifty, after experiencing heavy erosion a day before, saw a significant recovery, gaining 735 points to end near the 22,600 zone, once again moving above the significant 50-EMA level of 22,400. The index has support near the low made around 21,800 levels, and on the upside, a decisive breach above the 22,900 zone could further improve market sentiment.”
Parekh also highlighted the performance of the Bank Nifty, which gained over 4%, moving past the 49,000 mark with a decent recovery. “The support is maintained near the 47,300 level, and it needs to sustain above the 50-EMA level of 48,150 to keep the bullish bias intact. A decisive breach above the 49,700 zone could signal further upside, barring any unexpected political developments,” she added.
For the Nifty, Parekh identified immediate support at 22,450 and resistance at 22,900. The Bank Nifty’s daily range is projected to be between 48,200 and 50,300.
Vaishali Parekh’s Stock Picks
- HDFC Life: Buy at ₹552, target ₹577, stop loss ₹540.
- ITC: Buy at ₹430, target ₹455, stop loss ₹420.
- Coal India: Buy at ₹460, target ₹482, stop loss ₹450.
The Indian stock market‘s recovery is a positive sign, driven by political stability and strong technical indicators. Investors are advised to keep a close watch on support and resistance levels to navigate potential market movements effectively. Vaishali Parekh’s stock recommendations offer strategic entry points for those looking to capitalize on the current market trends.