Nifty Set for Gap-Up Opening: Vaishali Parekh Identifies Three Stocks to Consider Buying Today

Indian Stock Market Witnesses Sharp Sell-Off Ahead of Market Close

The Indian stock market experienced a sharp sell-off on Monday, despite a strong start driven by robust Q4 earnings from HDFC Bank and ICICI Bank. The Nifty 50 index finished 11 points higher at 24,364, while the BSE Sensex ended 26 points higher at 78,520. The Bank Nifty index ended marginally higher at 56,582.

The initial strength in the market was fueled by positive earnings from HDFC Bank and ICICI Bank, which reinforced confidence in the financial sector's resilience. Additionally, YES Bank's strong profit growth contributed to the positive sentiment within banking stocks. PSU banks and financials outperformed during the initial phase, providing a strong cushion to the broader indices.

However, the positive momentum faded as the session progressed, and a sharp sell-off post 3 pm weighed on the indices, triggered by a combination of global and domestic factors.

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Gift Nifty Index Signals Cautious Positive Bias

The Gift Nifty index opened upside at 24,443 but failed to sustain at higher levels and retraced from the intraday high. As of 7:00 AM, the index is trading 83 points higher at 24,425.

Market Outlook

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market bias is cautiously positive. According to Parekh, the Nifty 50 index is facing a hurdle near 24,470. She notes that the 50-stock index is precariously placed, with the 24,300 zone as the key band to sustain for now.

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Parekh predicts a gap-up opening on Tuesday as the Gift Nifty is trading above 24,400, logging over 75 points intraday gain. She also notes that the 200-period MA at the 25,000 zone shall be positioned as the major resistance level which needs to be breached to establish strength.

Stock Recommendations

Vaishali Parekh recommends the following intraday stocks to buy or sell: