Vaishali Parekh Suggests Three Intraday Stock Picks Amid Market Volatility

Indian Stock Market Experiences Sharp Decline on Monday

The Indian stock market benchmarks, the Sensex and the Nifty 50, started the week with a deep cut, falling over 2% in morning trade on Monday, April 13. The Sensex crashed over 1,600 points, or more than 2%, to an intraday low of 75,937, while the NSE benchmark Nifty 50 plunged 500 points, or 2%, to the day's low of 23,556.

The selloff engulfed all segments of the market, as the Nifty Midcap 100 and Smallcap 100 indices also plunged more than 2% each. Investors lost approximately ₹8 lakh crore within minutes as the overall market capitalisation of BSE-listed firms was at ₹443 lakh crore around 9:20 am compared to ₹451 lakh crore in the previous session.

The weak opening can be attributed to the escalation of the US-Iran war following the failure of ceasefire negotiations in Islamabad over the weekend. According to experts, the Indian stock market's undertone is cautious, as the Nifty 50 index needs to sustain above 23,700 to hold the support amid weak global sentiment.

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Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes that the Indian stock market is in a negative bias after the US government announced a Strait of Hormuz blockade following the failure of ceasefire talks in Islamabad. However, it would be important for the Nifty 50 index to sustain above 23,700. If the 50-stock index ends above 23,800 on Monday, then bulls may have a sigh of relief, and they may respond strongly and give a befitting reply to bears in the coming sessions.

Parekh emphasized that the Nifty 50 index would need to stabilise and sustain above the 23,800 zone to establish conviction and clarity for further positive moves in the coming days. On the downside, the index would need to sustain the near-term support of the 23,400 zone.

Regarding the Bank Nifty index, Parekh said that the index witnessed a strong bounce back after a gap-up opening session, ending near the 56,000 zone, with bias and sentiment slightly easing out but still maintaining a cautious approach as of now. The index would have the important resistance zone near the 57,000 level, which needs to be breached decisively above, while at the same time, it would need to sustain the 53,500 level positioned as the important support zone from the current zone.

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Parekh recommended the following stocks for intraday trading: