Buy or sell stocks: The Indian stock markets crashed on Tuesday, January 21, due to a broad selloff as investors exercised caution after US President Donald Trump unveiled plans for trade tariffs on neighbouring countries shortly after taking office. The Nifty 50 index closed 1.37 per cent lower at 23,024.65 points, compared to 23,344.75 points at the previous market close.
The BSE Sensex index closed 1.60 per cent lower at 75,838.36 points, compared to 77,073.44 points at the previous market close.
Vaishali Parekh’s stocks to buy today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said the Nifty 50 failed to sustain above the 23,400 zone. The sentiment turned weak due to heavy profit booking. Parekh estimates the Nifty 50 Spot index to find support at 22,800 points and face resistance at 23,200 points. The Bank Nifty index will likely move in the 47,900 to 49,000 range.
Parekh recommended three buy-or-sell stocks for Wednesday: Tata Consumer Products Ltd, AVT Natural Products Ltd, and Hindustan Petroleum Corp. Ltd.
Stock market today
On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty has formed a big bearish candle on the daily chart after failing to sustain above the 23,400 zone. It witnessed steep slides intraday due to heavy profit booking to end near the 23,000 zone, with bias and sentiment turning weak again with a very cautious approach.”
“As mentioned earlier, the important and crucial support level of 23,000 need to be sustained, below which the index can witness further downward movement, with next support areas positioned near 22,800 and 22,500 levels,” said the stock market expert.
“Bank Nifty also could not move past the 49,600 zone, and, amid volatility, slipped down to end near the 49,550 level with bias turned weak once again. With a big red candle visible on the daily chart, the sentiment has turned cautious. The support level at 47,900 is at stake once again,” said Parekh.
Parekh said that the Nifty 50 Spot for today has support at 22,800 points and resistance at 23,200 points. The Bank Nifty index would have a daily range of 47,900 to 49,000.
Buy or sell stocks by Vaishali Parekh
1. Tata Consumer Products Ltd. (TATACONSUM): Buy at ₹970; Target at ₹1,010; Stop Loss at ₹950.
2. AVT Natural Products Ltd. (AVTNPL): Buy at ₹75.8; Target at ₹80; Stop Loss at ₹73.
3. Hindustan Petroleum Corp. Ltd. (HINDPETRO): Buy at ₹370; Target at ₹390; Stop Loss at ₹360.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.