Buy or sell stocks: On account of weak global cues after US Fed officials hawkish commentary on interest rate hike, Indian stock market reversed its two days uptrend and ended in red territory on Thursday. 50-stock index Nifty dipped 245 points and closed at 18,414, 30-stock Bombay Sensitive Index or Sensex crashed 878 points and finished at 61,799 while Nifty Bank index ended 550 points lower at 43,498 levels. IT stocks received maximum beating following weakness in Nasdaq while cyclical sectors like metals and realty also feel the sell off heat.
Intraday trading strategy for Stock market today
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher believes that Dalal Street sentiment has turned cautious as IT, metals, banking and financial services stocks witnessed heavy profit booking on Thursday session. Vaishali Parekh of Prabhudas Lilladher went on to add that current chart pattern indicates bearish sentiment for short term. Asked about intraday stocks for today, Vaishali Parekh recommended two stocks to buy today and those two stocks are Godrej Consumer Products and Shriram Transport Finance.
On stock market outlook, Vaishali Parekh said, “Nifty after a weak opening witnessed heavy selling pressure to slide further and as the day progressed ended on a weak note near 18,400 levels indicating a bearish candle pattern and a lower top formation on the daily chart. The bias and sentiment turned cautious as IT, Metals, Banking stocks and Financial Services witnessed heavy profit booking and dragged the index with 18200 now as the next crucial support zone visible.”
“Bank Nifty along with Nifty index slipped heavily with 42,700 maintained as the major support zone. With the overall sentiment turning weak, the bias has been maintained little bit with a cautious approach. The support for the day is seen at 18,300 while the resistance is seen at 18,550. Bank Nifty would have the daily range of 43,000 to 44,000 levels,” said Parekh.
Stocks to buy today
As mentioned above, Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today, here we list out full details in regard to those shares:
1] Godrej Consumer Products: Buy at ₹903, target ₹935, stop loss ₹975; and
2] Shriram Transport Finance: Buy at ₹1393, target ₹1430, stop loss ₹1370.
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 taking any investment decisions.
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Read More: Buy or sell: Vaishali Parekh recommends 2 stocks to buy today — December 16