Buy or sell stocks for today: Domestic equity benchmarks Nifty 50 and Sensex witnessed a huge sell-off in the previous session dragged by a sharp fall in information technology (IT) stocks ahead of the US Federal Reserve’s monetary policy decision — which is due later tonight, that could impact the extent of foreign fund inflows.
The 30-share Sensex dropped 736 points, or 1.01 per cent, to close at 72,012.05 on March 19, while the Nifty 50 ended the day at 21,817.45, down 238 points, or 1.08 per cent. The BSE Midcap index lost 1.36 per cent while the Smallcap index ended 1.04 per cent lower. IT stocks, which are sensitive to US interest rates, dropped 2.9 per cent on Tuesday, the most among the major sectors.
Investors also remained cautious following the Bank of Japan’s decision to raise rates for the first time in 17 years, ending eight years of negative interest rates, as expected by the market. Traders will now shift their focus to the outcome of the Jerome Powell-led Federal Open Market Committee (FOMC).
The Fed is expected to keep rates unchanged and investors will take cues from the central bank’s interpretation of recent inflation trends and economic growth. Also, international crude oil prices hit multi-month highs over Ukraine’s drone attack on Russia posing supply disruptions, with Brent futures at $87 per barrel and US West Texas Intermediate at $82.47.
Also Read: US Fed meeting: 3 key things that may influence Fed’s interest rate decision and more
Intraday trading tips for Wednesday
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said that Nifty 50’s next important and crucial support zone is way below 21,500 zone while on the upside a decisive breach above 22,000 only can bring about some conviction.
The Prabhudas Lilladher expert added that for Bank Nifty, a decisive breach above 47,300 levels is necessary to establish some conviction for the bias to improve. Coming to the stocks that investors can buy, Vaishali Parekh recommended three intraday stocks for today —Heidelberg Cement India, VRL Logistics, and RBL Bank.
Stock market today
On the outlook for the Nifty 50’s performance today, Vaishali Parekh said, ‘’Nifty after three sessions of consolidation breached below the 22,000 zone weakening the bias and also ended below the significant 50EMA level of 21,860 with the index now precariously placed and maintaining a very cautious approach.
‘’Bank Nifty continue to remain weak hovering below the 50EMA zone of 46,600 levels with downside major support lying near the 45,600 zone of the previous bottom made,” she said.
Parekh added that for Nifty 50, the support for the day is seen at the 21,650 level while the resistance would be seen at 22,000. Bank Nifty would have a daily range of 45,800-46,800 levels.
Nifty Spot Index
Support – 21,650
Resistance – 22,000
Bank Nifty Spot Index
Support – 45,800
Resistance – 46,800.
Also Read: Oil market oversupplied with record-high US output, Brent seen at $87-$92 for 2024: ShareKhan’s Mohammed Imran
Stocks to buy today
1.Heidelberg Cement India: Buy Heidelberg Cement at ₹199.55, Target ₹210, Stop Loss ₹195
2.VRL Logistics: Buy VRL Logistics at ₹562, Target ₹587, Stop Loss ₹550
3.RBL Bank: Buy RBL Bank at ₹228, Target ₹240, Stop Loss ₹223.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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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.
