Vaishali Parekh Recommends Stocks to Buy Ahead of Bank of Japan Interest Rate Decision

Indian Stock Market Sees Improvement in Sentiment

The Indian stock market experienced a positive shift in sentiment on Monday, April 27, with key benchmark indices rising around 1% to break a three-day losing streak. The gains were primarily driven by a rebound in IT stocks, with strong support from pharma and consumer goods shares. The Nifty 50 and the BSE Sensex both ended 0.80% higher, while the broader market followed suit, with the Nifty Midcap 100 and Nifty Smallcap 100 indices surging more than 1.5%.

Market Outlook

The Gift Nifty index is signaling a muted opening on Dalal Street, as investors await the Bank of Japan's interest rate decision, expected soon. Investors are also keeping their fingers crossed as the US Fed meeting outcome is also expected today. Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment improved on Monday, but expects a muted opening on Tuesday, as the Gift Nifty index opened lower at 24,090 and continued trading in the red zone. By 7:05 AM, the Gift Nifty index was trading around 24,050.

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Vaishali Parekh's Outlook

Vaishali Parekh expects the Nifty 50 index to need to sustain above the 50-EMA at 24,200, and the important hurdle of 24,300 would need to be decisively breached to establish conviction and improve the overall bias. The index would have the important support zone at the 23,500 level, which needs to be sustained to maintain the bias intact as of now. Speaking on the outlook for the Bank Nifty today, Vaishali Parekh said the index ended the session in the green, consolidating near the important 50-EMA at 56,300 and sustaining above the near-term support at 55,800, with a cautiously positive bias as of now.

Stock Recommendations

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Vaishali Parekh has recommended the following three buy-or-sell stocks:

Bank of Japan Interest Rate Decision

The Bank of Japan's policy meeting is scheduled for today, April 28. The announcement comes amid the ongoing Middle East crisis, which has persisted for two months, and amid fears of higher inflation due to the oil price spike. Most economists expect the BOJ to keep the policy rate steady at 0.75% at the end of its two-day meeting today, even as the yen hovers near levels that have prompted past interventions.