Buy or Sell: After a weak start from global peers on Monday, Indian markets improved on strong buying in banking and financial stocks. The sentiment was boosted by a good start to the second quarter of IT and banking. Sensex closed above 58,400 and Nifty 50 closed above 17,300. If Nifty crosses the 17,350 level, further upside may give some clarity. For Tuesday, Nifty is expected to find resistance near 17,500, while Bank Nifty may remain in the range of 39,500 to 40,600. Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher has made a buy recommendation on the two stocks for today.
on BSE, nifty 50 points up 126.10 points or 0.73% to end at 17,311.80, while Sensex climbed 491.01 points or 0.85% to end at 58,410.98. Nifty Bank and Financial Services gained 1.5% and 1.15%, respectively. like stock State Bank Of IndiaBajaj Finserv and Axis Bank were the top performers.
Parekh said, “Nifty recovered strongly after opening on a slightly weaker note and came back to touch the 17300 zone crossing the crucial 50EMA level of 17250, with many frontline stocks showing correction in bias and momentum. BankNifty indicated a strong session along the frontline.Banking stocks like Axis Bank, Kotak Bank and SBI saw a decent rise to pull the index into around 40,000 zone and extended target of 41000-41500 levels Expected.
On Tuesday, Parekh said, for Nifty, a decisive move after the 17350 zone would establish some clarity and conviction for further upsides expected in the coming days. Support for the day is being seen at 17200 while resistance will be at 17450. The daily limit of BankNifty will be at the level of 39500-40600.
Due to which Nifty spot index is likely to get support between 17200/17150 and resistance around 17450/17500 on Tuesday. Whereas Bank Nifty may find support near 39500/39450 and resistance near 40600/40650.
Expert has advised to buy two shares.
Pidilite Industries: Buy this stock 2,690 with a stop loss of 2,660 to the target of 2,755.
Indian Hotels: Buy Stock Here With a stop loss of 318 for a target price of 314 328 each.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Broadly speaking, even though the Q2 preview analysis assumes a muted outlook, it is quite efficient considering the consolidation of the past one month. Enhanced operating cost reduction, predicting QoQ improvement in profitability and mitigating the risk of earnings decline.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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