Nifty Falls Amid Weak Market Sentiment, Vaishali Parekh Picks Three Stocks to Consider for Investment
Indian Stock Market Experiences Volatile Session
The Indian stock market witnessed a highly volatile session on June 2, with the key benchmark indices closing near the 23,500 mark. After slipping to an intraday low of 23,229.15, the market staged a sharp recovery in the latter half of the session, with the Nifty rebounding nearly 250 points from the day's low. The recovery was primarily driven by short covering and strong buying interest in IT stocks.
Market Performance
At close, the Sensex gained 382.50 points or 0.52% to settle at 74,649, while the Nifty 50 index advanced 100 points or 0.43% to close at 23,483. On the sectoral front, the Nifty IT index emerged as the top performer, surging 4.30% and significantly outperforming the broader market. Buying interest was also witnessed in Consumer Durables, FMCG, and Auto stocks.
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| Sector | Gain/Loss |
|---|---|
| Nifty IT | 4.30% |
| Consumer Durables | 2.50% |
| FMCG | 1.80% |
| Auto | 1.50% |
| Nifty Healthcare | -1.20% |
| Pharma | -1.50% |
| Oil & Gas | -2.00% |
Broader Markets Participate in Recovery
Broader markets also participated in the recovery, with the Nifty Midcap 100 index rising 0.19% and the Nifty Smallcap 100 index gaining 0.40%. The ongoing geopolitical uncertainties continue to keep investors' sentiment cautious.
Gift Nifty Signals Gap-Down Opening
The Gift Nifty Live Chart is signalling a gap-down opening as the index is trading below the spot Nifty close on Tuesday. The index today opened marginally higher at 23,498 but soon came under selling pressure, touching an intraday low of 23,457.
Market Outlook
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market may open gap down on Wednesday, as the Gift Nifty is trading below Tuesday's spot Nifty close. She said the Nifty 50 index has crucial support at 23,200, which needs to remain sacrosanct for the key benchmark to reach 24,000 in the near term.
Vaishali Parekh's Stock Recommendations
Vaishali Parekh recommends the following three stocks:
- RVNL: Buy at ₹240, Target ₹260, Stop Loss ₹232
- RCF: Buy at ₹126.90, Target ₹133, Stop Loss ₹124
- KFin Tech: Buy at ₹864, Target ₹885, Stop Loss ₹840
Investor Takeaway
Investors should consider buying IT stocks due to strong buying interest.
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