The Indian stock market is currently experiencing a bearish phase, raising concerns among both retail and institutional investors. In this context, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, has pinpointed three stocks that are poised for intraday trading on Wednesday, October 23, 2024. The stocks under her spotlight are Tata Power, REC, and Poly Medicure, which she believes present trading opportunities amid the market’s downturn.
Market Overview
The Indian stock market has faced notable turbulence lately, with the Nifty 50 index dipping below the critical 24,700 mark. The downturn has been largely attributed to disappointing Q2 results for 2024, alongside aggressive selling from foreign institutional investors (FIIs) and local market participants. On Tuesday, the Nifty 50 index saw a drastic drop of 309 points, settling at 24,472, while the BSE Sensex plunged 930 points to close at 80,220. The Bank Nifty index also faced substantial losses, dropping 705 points to end the day at 51,257. Mid-cap and Small-cap indices encountered severe sell-offs, witnessing declines ranging from 2.5% to 3.8%.
Sensex and Nifty Analysis
According to Vaishali Parekh, a bearish trend has taken hold of the market following the Nifty 50 index’s breach below the neckline of a head-and-shoulders pattern near the 24,700 zone. She emphasized that the index has critical support at approximately 24,000. A failure to uphold this level could lead to a test of the significant 200-period moving average (MA), projected to be around 23,300 in the upcoming days. Furthermore, Parekh pointed out that the Bank Nifty index is also echoing bearish signals as indicated by a significant candlestick formation. A decisive drop below the 51,000 mark may trigger further declines, with major support available near the 200-period MA around 49,300. For today’s trading session, she identified Nifty’s immediate support at 24,300 and resistance at 24,600. The Bank Nifty is anticipated to trade within a range of 50,700 to 51,600.
Technical Analysis
Here are Vaishali Parekh’s stock recommendations for traders today:
- Tata Power: Recommended to sell at ₹434, targeting ₹420, with a stop-loss set at ₹445.
- REC: Suggested to sell at ₹509, aiming for a target of ₹490, with a stop-loss at ₹528.
- Poly Medicure: Recommended to buy at ₹2,573, targeting ₹2,800, with a stop-loss established at ₹2,500.
Conclusion
In light of Vaishali Parekh’s insights, it’s crucial for investors to tread carefully in the current volatile market landscape. The prevailing bearish sentiment among significant market indices suggests that traders should vigilantly observe their portfolio positions and strictly adhere to stop-loss protocols to mitigate risk exposure. In these uncertain times, informed decision-making and strategic trading approaches become paramount for navigating the stock market effectively.
Disclaimer: The opinions and recommendations provided in this analysis are those of individual analysts and brokerage firms and do not reflect the views of India Hood. Investors are encouraged to consult certified experts before proceeding with any investment strategies, as market conditions are subject to rapid changes. This article serves to offer valuable insights into prevailing stock recommendations while underscoring the importance of sound trading practices in current market dynamics.