Nifty Signals Gap-Down Opening: Vaishali Parekh Recommends Three Stocks to Consider Buying

Indian Stock Market Witness Corrective Session Amid Weak Global Markets

The key benchmark indices of the Indian stock market witnessed a corrective session on Wednesday, snapping gains from the previous day. The Nifty 50 index crashed 198 points and closed at 24,378, while the BSE Sensex nosedived 756 points, finishing at 78,516. The Bank Nifty index corrected 247 points and closed at 57,124.

Sectoral Performance Mixed

Sectorally, the tone was mixed, with a sharp sell-off in IT stocks, while auto, banking, and financials also witnessed profit booking after the recent rally. However, select names from the energy, FMCG, and realty spaces showed relative resilience. Notably, broader markets remained relatively stable, with midcaps ending flat and smallcaps gaining over 1%, indicating selective participation.

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Market Outlook

According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the Indian stock market bias is cautious. The Nifty 50 index is finding resistance around 24,500, and a bullish or bearish trend can be assumed on a break above or below this range. Parekh predicted a gap-down opening on Wednesday as the Gift Nifty is trading red since morning.

Nifty 50 Index Outlook

The Nifty 50 index is finding resistance near the 24,500-zone, slipped down with profit booking witnessed amid geo-political tensions once again hanging on with no clarity and overall, the indices are precariously placed with a cautious approach.

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Bank Nifty Index Outlook

The Bank Nifty index witnessed resistance near the 57,450 zone and slipped, with profit booking seen to close near the 57,000 zone, maintaining a cautious approach for now. The near-term support for the Bank Nifty index is at the 55,800 zone, which needs to be sustained, whereas the 100-period MA at the 58,200 level would be the near-term resistance, which needs to be breached above.

Stock Recommendations

Vaishali Parekh recommended the following three intraday stocks to buy or sell: