The Indian stock market is expected to open with a gap-up today, as reported by Live Mint. According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the Gift Nifty index opened upside at 24,051 and extended its gains further by hitting today's high of 24,135. This indicates a positive opening for the 50-stock index and other indices of the Indian stock market. However, Parekh maintained that the Indian stock market bias remains cautious as the Nifty 50 index slipped below 24,000 during the stock market crash on Friday.
The key benchmark indices of the Indian stock market remained under bearish pressure for the third straight session last week. As reported by Live Mint, the Nifty 50 index crashed 679 points in these three sessions, while the BSE Sensex nosedived over 2,600 points from Wednesday to Friday. The Bank Nifty index, which ended at 57,371 on Tuesday, finished at 56,089, losing nearly 1,300 points in three straight sessions. Among sectors, the IT index corrected sharply, shedding over 10%, whereas the FMCG and Energy indices rallied over 2% despite weak market sentiment.
According to Parekh's analysis reported by Live Mint, the Nifty 50 index has its next support placed at 23,500, with breaking below this support potentially testing the 23,000 levels. On the upside, the crucial resistance zone is near the 24,300 level, which needs to be breached to improve the bias. The Bank Nifty index slipped below the important 50-EMA at 56,300 during the session, with the bias turning weak and closed near 56,000. The important support levels are at 55,000 and 53,500, while the 200-period MA at 57,300 would be an important hurdle on the upside.
Vaishali Parekh of Prabhudas Lilladher has recommended three stocks to buy today as reported by Live Mint. The recommendations include Tata Power at ₹433 with a target of ₹442 and stop loss at ₹425, SAIL at ₹177 with a target of ₹182 and stop loss at ₹174, and TCI at ₹942 with a target of ₹965 and stop loss at ₹930.
