Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 6
Stock market today: The Nifty 50 index once again plunged after making a double top at around its current resistance placed at 22,800, believes Vaishali Parekh of Prabhudas Lilladher.
Buy or sell stocks for today: Despite strong global market sentiments, the Indian stock market ended lower on Friday. The Nifty 50 index ended 172 points lower after reaching a new peak of 22,794, and the BSE Sensex dropped 732 points from its lifetime high of 75,124. The Bank Nifty index also saw a significant decline of 307 points, closing at 48,923. In the broader market, the small-cap index finished 0.55 per cent lower after reaching a new peak of 47,678, and the mid-cap index ended 0.21 per cent lower after touching a new high of 42,774.
Vaishali Parekh’s stocks to buy today
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes that the positive trend of the Indian stock market got a dent on Friday as the Nifty 50 index once again plunged after making a double top at around its current resistance placed at 22,800. However, the Prabhudas Lilladher expert maintained that the Dalal Street trend is expected to remain bullish till the 50-stock index is above its current support of the 222,230 range. On stocks to buy today, Vaishali Parekh recommended three buy or sell stocks — Torrent Pharma, BEML, and Bombay Dyeing.
Stock market today
On the outlook for the Nifty 50 today, Vaishali Parekh said, “Nifty, after resisting near the 22800 zone for the second time to indicate a double top, finally plunged to form a big bearish engulfing candle pattern on the daily chart with sentiment little bit shaken and would need to sustain the important 50EMA level of 22230 zone to maintain the overall bias intact.”
“Bank Nifty also slipped drastically from around the 50000 levels, and with a bearish candle formation, the bias is precariously placed with major support maintained the significant 50EMA level of 47600 zone,” said Parekh.
Parekh added that immediate support for Nifty today is placed at 22,300 levels while the resistance is at 22,600. Bank Nifty would have a daily range of 48,500 to 49,300 levels.
Stocks to buy today
1] Torrent Pharma: Buy at ₹2735, target ₹2845, stop loss ₹2675;
2] BEML: Buy at ₹3552, target ₹3700, stop loss ₹3470; and
3] Bombay Dyeing: Buy at ₹178.50, target ₹186, stop loss ₹175.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.