Vaishali Parekh Recommends Three Stocks to Buy Amid Nifty Correction

Indian Stock Market Braces for Weak Start Amid Global Risk Sentiment

The Indian stock market is set for a weak start to the week, with the Gift Nifty trading around 23,110, a significant gap-down from Friday's Nifty close of 23,366. The negative setup is largely being driven by a sharp deterioration in global risk sentiment, particularly across Asian markets. The unwinding of the global AI-led rally has triggered significant selling pressure, with South Korea's technology-heavy KOSPI plunging nearly 8%, forcing a temporary trading halt and extending its correction from recent record highs.

Japan's Nikkei also opened sharply lower, reflecting a broad risk-off mood across the region. Adding to investor nervousness, renewed geopolitical tensions in the Middle East have pushed crude oil prices and the US dollar higher. Rising energy prices remain a key risk for India, given its dependence on imported crude, and could keep inflationary concerns elevated despite the RBI's recent policy support.

Market Outlook

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Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the key indices of the Indian stock market may open sharply lower on Monday. The Gift Nifty live chart shows a negative start to the new week, with the index trading around 250 points below Friday's spot Nifty close. The Gift Nifty live chart opened today at 23,101 and touched an intraday low of 23,081 within a few minutes. By 7:15 AM, the index was oscillating around 23,110.

Stock Market Analysis

Vaishali Parekh noted that the Nifty 50 witnessed a slightly volatile session, finding resistance near the 23,500 zone and once again slipping, with profit booking seen to end the session near 23,350 levels. The key benchmark index continues to move within a range, maintaining the strong support zone near the 23,200 level, whereas on the upside, the important 50-EMA level at the 23,900 zone is the resistance hurdle which needs to be breached decisively to establish conviction and trigger a fresh upward move in the coming days.

On the outlook for the Bank Nifty, Parekh said the key index witnessed fluctuations during the session, finding resistance near the 54,850 zone, and amid volatility, closed near the 54,500 zone, with a cautiously positive bias, having no clear direction or conviction. "The upside for the Bank Nifty index is capped near the tough resistance barrier of 55,500 zone, which needs to be breached above decisively, while the downside is maintained with strong support visible near the 53,000 zone, which needs to be sustained in the coming sessions," she said.

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Stock Recommendations

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