Buy or Sell: Vaishali Parekh Recommends Three Stocks to Buy Today — October 19
Written by Sanjay Kumar
After a day of mixed and choppy trading in Asian markets, the Indian stock market faced a downward trajectory on Wednesday, October 18. The Nifty 50 index slipped by 140 points, closing at 19,671 levels. The BSE Sensex corrected by 551 points, ending at the 65,877 mark, while the Bank Nifty index finished 520 points lower at 43,888 levels. Notably, volumes on the NSE were slightly higher than the recent average, and the mid-cap index saw a more significant drop compared to the Nifty. The advance-decline ratio sharply declined to 0.57:1.
Intraday Trading Strategy for Thursday
Vaishali Parekh, the Vice President of Technical Research at Prabhudas Lilladher, has suggested that the bias on Dalal Street has weakened slightly after Nifty closed below the 19,700 levels. She added that Nifty’s crucial support is located at 19,600, and falling below this level could intensify selling pressure.
For those looking for stock recommendations for the day, Vaishali Parekh has identified three intraday stocks: Cipla, Himatsingka Seide, and Prestige Estates.
On the Outlook for Nifty Today
Vaishali Parekh expressed her views on Nifty’s outlook for the day, stating, “Nifty once again failed to move past the resistance levels of 19,850 zone and finally slipped in with heavy profit booking, leading to a decline below the 19,700 zone. The bias has turned weak, and the sentiment is cautious. From a technical perspective, as previously mentioned, the index’s near-term support zone lies at 19,600 levels, specifically the significant 50EMA zone. A breach of this level could anticipate intensified selling pressure, with the next major support visible near the 19,200 zone.”
She also mentioned the situation with Bank Nifty, stating, “Bank Nifty also succumbed from the 44,400 zone, with profit booking observed during the intraday session, ultimately ending near the 43,900 levels. Major frontline banking stocks showed signs of weakness. A decisive breach below the 43,800 zone could trigger a further slide towards 43,000, with sentiment turning bearish.”
Vaishali Parekh further noted that the near-term support for the Nifty 50 index is at 19,600 levels, while resistance is seen at 19,800 levels. Bank Nifty is expected to have a daily range between 43,500 and 44,200 levels.
Stocks to Buy Today
- Cipla: Buy at ₹1210, with a target of ₹1260 and a stop loss at ₹1190.
- Himatsingka Seide: Buy at ₹146.45, with a target of ₹155 and a stop loss at ₹144.
- Prestige Estates: Buy at ₹732.75, with a target of ₹770 and a stop loss at ₹722.
Please note that these recommendations are for informational purposes and should be considered with due diligence and risk assessment. The stock market can be volatile, and it’s essential to make informed decisions based on your financial goals and risk tolerance.