By Vaishali Parekh has recommended three stocks to buy today – NMDC, Castrol India, and GAIL. These recommendations come as the Indian stock market experiences significant fluctuations, influenced by the election’s ongoing developments.
Last week, the Nifty 50 index reached a high of 23,100, only to retract and close at 22,530, a modest gain of 42 points. The BSE Sensex also saw a slight increase, ending 75 points higher at 73,961. The Bank Nifty index performed notably well, gaining 301 points to close at 48,983. Trading volumes on the NSE cash market reached an unprecedented ₹2.29 lakh crore, driven by MSCI and FTSE rebalancing. Meanwhile, the small-cap index rose by 0.76%, with an improved advance-decline ratio of 0.81:1.
Vaishali Parekh’s analysis highlights that the Nifty 50 index, after peaking at 23,100, is now precariously positioned ahead of the election results. She notes that a decisive breach above the 22,800 level would enhance the market’s bias, while a fall below 22,150 could signal a broader market weakness. For the Bank Nifty, she suggests a daily range between 48,500 and 49,600, with significant support near 47,400. A clear breakout above 49,600 could pave the way for further upward movement, targeting 51,600 and 53,500 levels in the coming days.
With the election results looming, Parekh’s stock picks are particularly timely. NMDC, recommended to buy at ₹260, has a target price of ₹274, with a stop loss at ₹245. Castrol India is advised for purchase at ₹198, aiming for a target of ₹207 with a stop loss at ₹191.
GAIL (India) is suggested at ₹204.30, targeting ₹217, with a stop loss at ₹199. These recommendations reflect her confidence in these stocks’ potential, despite the current market uncertainty.
The market’s volatility is expected to persist until the election results are announced, with most exit polls predicting a third term for Narendra Modi’s government. This political development is likely to have significant implications for market movements, as investors respond to the anticipated policy continuity and economic reforms associated with Modi’s administration.
On Friday, the stock market’s frontline indices managed to close marginally higher after erasing most of the morning’s losses. The modest gains reflect the cautious sentiment prevailing among investors, who are wary of making significant moves ahead of the election outcome. The heightened trading volumes on the NSE indicate active participation by institutional investors, adjusting their portfolios in response to the MSCI and FTSE rebalancing.
Parekh’s insights into the market’s technical levels provide valuable guidance for investors navigating this uncertain period. The critical resistance and support levels she identifies for the Nifty 50 and Bank Nifty indices will be closely watched by traders, seeking to capitalize on any clear directional moves. Her recommendations for NMDC, Castrol India, and GAIL offer specific opportunities for those looking to make strategic investments amid the prevailing volatility.
