Buy or sell stocks: The Indian stock market’s benchmark indices — Sensex and Nifty — rallied for the third day on Wednesday, November 12, driven by optimism over improving trade dialogue prospects between India and the US, coupled with encouraging Q2 earnings from key corporates.
Some analysts also attributed the reason behind the market rise to the Bihar exit poll outcome that signals a win for the National Democratic Alliance (NDA).
Buying was seen in IT stocks and index heavyweight Reliance Industries.
The 30-share BSE Sensex rallied 595.19 points, or 0.71%, to settle at 84,466.51. The broader NSE Nifty climbed 180.85 points, or 0.70%, to close at 25,875.80. During the session, both indices rose 0.93%.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said that Nifty’s strong action on Tuesday now positions the index to test the previous peak of 26100, with 25700 acting as a support level. The analyst sees the index rising to 26600 to 26700 levels, once it takes out the current high.
“Nifty continued with the positive move to surge ahead with strength indicated and has crossed above our important hurdle at the 25750 zone to further strengthen the trend, and can anticipate retesting the previous peak level of 26100 zone in the coming sessions,” said Parekh.
The index would now have the elevated near-term support zone at the 25700 level, which needs to be sustained to maintain the overall bias intact, and once a breakout above the 26100 level is confirmed, one can expect higher targets of 26600 and 27000 levels in the coming days, the Prabhudas Lilladher analyst added.
Commenting on the Bank Nifty level, Parekh said that BankNifty, after opening on a positive note, once again found resistance near the 58500 zone and in the final hours slipped down to end just below the 58300 level with bias still maintained intact with consolidation happening.
The index, as per the expert, would need a decisive breach above the hurdle at the 58500 level to trigger a fresh upward move in the coming days. “The index would have the important and crucial support positioned near the 50EMA at 56800 level, which needs to be sustained.”
The support for the day is seen at 25750 levels, while the resistance is seen at 26100 levels. BankNifty would have the daily range of 57800-58800 levels, opined Parekh.
Vaishali Parekh’s stock recommendations today
Regarding intraday stocks for today, Vaishali Parekh of Prabhudas Lilladher recommends three stocks to buy: Natco Pharma, Religare Enterprises and Himatsingka Seide.
1. Natco Pharma: Buy at ₹823 | Target at ₹860 | Stop loss at ₹800
2. Religare Enterprises: Buy at ₹260 | Target at ₹270 | Stop loss at ₹255
3. Himatsingka Seide: Buy at ₹120 | Target at ₹128 | Stop loss at ₹117
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
