06 Sep , 2022 By : Kanchan Joshi
Buy and Sell: Indian markets rallied despite weak global cues on Monday, driven by metal, banking, consumer durables, and capital goods stocks. In a single day, the benchmark Sensex has climbed by more than 500 points and the Nifty 50 surged nearly 144 points. With the next day's trading session just around the corner, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher has recommended two stocks for intraday traders. These stocks are BSE and Inox Leisure.
Global markets are under pressure as concerns over the economic growth escalated due to high inflation, aggressive monetary policy approach coupled with recession fears, mixed US job data, Russia halting gas supplies in the EU, and exacerbating the energy situation in Europe have dampened sentiments.
Back at home, broad-based buying was seen in domestic equities. Smallcap stocks outperformed, while midcap stocks contributed to the upside substantially on Monday. Also, India's PMI business activity index at 57.2 in August rising from July's four-month low added to the market sentiment.
Sensex settled at 59,245.98 higher by 442.65 points or 0.75%. Nifty 50 closed at 17,665.80 up by 126.35 points or 0.72%.
Here's what Vaishali Parekh recommends for Tuesday's trading session
She said, "Nifty has once again moved ahead to cross the 17600 zone turning up the daily trend with improved bias and further as said earlier need to cross the 17700-17750 resistance barrier for further fresh upward move. BankNifty has shown strength closing above the previous peak zone of 39750 levels and further positive move in the coming days is anticipated."
"Along with Midcap and small-cap stocks showing active participation in recent times with further upside move anticipated, the overall bias and sentiment has improved quite well. The support for the day is seen at 17550 while the resistance is seen at 17800. BankNifty would have the daily range of 39400-40300 levels," she added.
Prabhudas Lilladher's experts two picks are
BSE - Buy at ?657 with a stop loss of ?642 and a target of ?690
Inox Leisure - Buy at ?523 with a stop loss of ?510 and a target price of ?555.
Parekh expects the Nifty Spot Index to have a support of 17550/17500 and resistance at 17750/17800. While Bank Nifty Spot Index is seen to have support around 39400/39350 and resistance around 40300/40350.