Buy or sell stocks: The key benchmark indices of the Indian stock market extended their upward trajectory for the second consecutive session on October 16, with benchmark indices scaling fresh multi-month highs, buoyed by sustained buying across sectors. The Nifty 50 breached the psychological 25,600 mark intraday for the first time since June 27, underpinned by robust investor sentiment and sector-wide participation, before witnessing mild profit-taking in the final trading hour. By the closing bell, the BSE Sensex surged 862.23 points, or 1.04%, to settle at 83,467.66, while the Nifty 50 advanced 261.75 points, or 1.03%, to close at 25,585.30. The broader market also ended in the green, with the Nifty Midcap and Smallcap indices gaining 0.46% and 0.24%, respectively, indicating continued interest in the more expansive universe.
Sectorally, the market breadth remained decisively positive. Barring the Nifty PSU Bank index, which slipped 0.4% on selective profit-booking, all other sectoral indices on the NSE closed in the green. Notable outperformance was observed in the Nifty Auto, Bank, Consumer Durables, Realty, FMCG, and Oil & Gas indices, which posted gains ranging from 0.5% to 1.7%, reflecting a risk-on sentiment and rotational buying by institutional participants. The rally was supported by both domestic and global cues, with declining crude oil prices and stable US yields providing a favourable macro backdrop.
Stock market today
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has improved as the Nifty 50 index has continued to gain after breaking above 25,300. The index appears poised to reach 25,800 in the near term.
Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50 index continued with a strong, robust move further ahead, indicating a breakout above the resistance zone of 25,500 level, with bias gaining strength, expecting further upward move in the coming days. With the undertone getting strong, the index would have the next target of 25,800 zone above which the trend would turn bullish to retest the previous peak zone of 26,300 level with the important support positioned at 25,000 level from here on.”
On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index has indicated a significant positive move with bias and sentiment turning strong with anticipation of further rise in the coming days, having the result outcome of the major frontline banking stocks like HDFC Bank and ICICI Bank releasing soon. The index’s next target of 57,700 level is in close vicinity and thereafter, with strength sustaining, can carry on with the upward move for a higher target of 59,700 level with the 50-DEMA at 55,600 zone positioned as the important support.”
Parekh stated that immediate support for the Nifty 50 index is located at 25,450, while the resistance is positioned at 25,800. The Bank Nifty index is expected to have a daily range of 57,000 to 58,000.
Vaishali Parekh’s stock recommendations today
Regarding stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks: KPI Green, UNO Minda, and Chalet Hotels.
1] KPI Green Energy: Buy at ₹463, Target ₹480, Stop Loss ₹455;
2] UNO Minda: Buy at ₹1235, Target ₹1280, Stop Loss ₹1210; and
3] Chalet Hotels: Buy at ₹970, target ₹1020, Stop Loss ₹948.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
