- Stock markets continue to face volatility amid rising crude oil prices and geopolitical tensions in the Middle East.
- The Indian market has ended lower for the fourth consecutive session, with key indices experiencing significant losses.
- Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provides insights and stock recommendations amidst the market downturn.
Discover the latest insights and stock recommendations from expert analyst Vaishali Parekh as the Indian market faces continued volatility.
Indian Stock Market Faces Continued Downturn
The Indian stock market has been experiencing a downward trend, with the Nifty 50 index losing 183 points to close at 22,704. The BSE Sensex also saw a significant drop, finishing 667 points lower at 74,502, while the Bank Nifty index fell by 640 points to end at 48,501. Cash market volumes on the NSE remained flat at ₹1.03 lakh crore. Despite the broad market indices falling less than the Nifty, the advance-decline ratio improved to 0.74:1.
Technical Analysis by Vaishali Parekh
Vaishali Parekh, a seasoned Vice President of Technical Research at Prabhudas Lilladher, has identified a critical development in the Nifty 50 index. She notes that the index has breached the crucial support level of 22,800, with the next support now positioned at 22,500. Parekh emphasizes that a trend reversal can only be anticipated if the index breaches the immediate resistance of 22,800 on a closing basis. Her analysis suggests that the Indian stock market’s sentiment has weakened, and investors should be cautious.
Outlook for Nifty and Bank Nifty
On the outlook for Nifty, Parekh states, “The Nifty 50 index ended on the losing side once again for the last three consecutive sessions, ending near the 22,700 zone with bias turning weak. The next crucial support zone is near 22,500, which needs to be sustained. For the bias to improve, a decisive breach above the 22,800 level must carry on with the upward move and anticipate retesting the previous peak zone of 23,100 levels.”
Regarding the Bank Nifty index, Parekh adds, “After resisting near the 49,700 zone, the Bank Nifty index has slipped down with bias turning weak. The important support level is near the 50EMA zone at around 48,000 levels. The index has been in a rising trend with a series of higher lows formation, and a decisive breach below 47,700 zones would weaken the trend.”
Stock Recommendations by Vaishali Parekh
Vaishali Parekh has recommended the following stocks for today:
1] NHPC: Buy at ₹101.60, target ₹106, stop loss ₹99;
2] Dr. Reddy’s: Buy at ₹6000, target ₹6250, stop loss ₹5870;
3] Ambuja Cements: Buy at ₹630, target ₹664, stop loss ₹616.
Conclusion
In conclusion, the Indian stock market continues to face challenges amidst rising crude oil prices and geopolitical tensions. Vaishali Parekh’s technical analysis provides valuable insights into the current market trends and offers strategic stock recommendations. Investors should remain cautious and consider expert advice before making any investment decisions.
