Indian stock market: Indian stock market indices closed approximately half a percent lower due to profit booking after reaching higher levels, on Wednesday. The Sensex fell by 426.87 points, or 0.53%, settling at 79,924.77, while the Nifty 50 finished 108.75 points, or 0.45%, down at 24,324.45.
Meanwhile, the Bank Nifty index ended the session down by 379.50 points, or 0.72%, closing at 52,189.30. Throughout the day, the index ranged from a high of 52,528.80 to a low of 52,075.40.
“The Nifty made fresh all-time high supported by Automobile and Pharmaceutical stocks. For the day, our bias continue to remain positive and we expect Nifty to move towards 24550- 24600 levels. On the downsides, 24300 is expected to act as major support area,” said brokerage firm ICICI Direct in a report.
ICICI Direct Research has recommended two stocks to buy or sell this week – Alkem Laboratories and Asian Paints India.
Stock picks
Alkem Laboratories: But at ₹5060-5085 | Target Price: ₹5410 | Stop Loss: ₹4874.9
Pharmaceuticals have shown renewed strength after a few weeks of consolidation. Alkem Laboratories has witnessed long positions in the futures segment, and rising delivery volumes indicate accumulation at lower levels during the consolidation phase. The current momentum in the pharma sector, along with the stock current setup, presents a favorable risk-reward scenario, suggesting potential upward movement towards 5410 levels.
Asian Paints India: Sell at ₹2925-2935 | Target Price: ₹2780 | Stop Loss: ₹3021
Paint stocks have been underperforming over the past few months compared to the headline indices. The stock has failed to surpass major resistance level of 3000. Additionally, option data shows that the 3000 Call strike holds a maximum open interest, indicating a strong supply point. The stock is once again moving down from current levels, presenting a shorting opportunity. We believe this stock may see a downward move towards lower levels.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
