Buy or sell: Vaishali Parekh recommends buying these 3 stocks today – 6 September

The 30-share BSE Sensex ended higher by 152.12 points or 0.23% 65,780.26 level while the Nifty also closed at 19,574.90 level, up 46.10 points or 0.24%.

India’s services activity continued to expand in August, but at a slower pace than in July. The services purchasing managers’ index (PMI) fell to 60.1 in August from 62.3 recorded in July, according to data released by S&P Global on Tuesday. 

Mid-caps and small-caps outperformed the blue-chips setting new highs. The Nifty Midcap 100 index gained a percent to hit an all-time high, riding past 40,000-mark on Tuesday led by a strong bullish momentum in midcap stocks.

Nifty PSU Bank index hit a record high of 4,722, up 1%. Nifty media which jumped 3.19% followed by Nifty healthcare that rose 1.55%, Nifty Pharma that gained 1.10%, and Nifty Realty which rose 1.06%.

Nifty FMCG, Nifty IT, Nifty Media, and Nifty Metal gained 0.5% to 0.7%, while Nifty Bank (down 0.10%), Nifty Auto (down 0.01%), and Nifty Financial Services (down 0.17%).

Also Read: Market Wrap: Sensex, Nifty extend rally for third straight session; small, midcaps outperform

However, foreign institutional investors (FIIs) extended their selling spree and offloaded ₹1,725.11 crores, while domestic institutional investors (DIIs) remained buyers for the 13th straight session and invested ₹1,077.86 crores. 

“Domestic equities closed positively for the third consecutive day led by optimistic domestic cues. Services PMI data came in strong at 60.1 for the month of August, boosting sentiments. Despite weak global markets, Nifty opened positive and traded in a narrow range to finally close with gains of 46 points (+0.2%) at 19,575 levels. 

Broader market outperformed with Midcap100/Smallcap100 up 1.1%/0.8%. Except for Auto and Financials, all sectors gave positive return with media rallying more than 3% while Healthcare gained 1.6%. Going ahead, market would continue trading in a broader range with positive bias as resilient domestic economy provides strength, amidst uncertain global cues,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: FIIs offload ₹1,725 crore in Indian equities even as markets settle higher, DIIs invest ₹1,078 crore

Day trade guide by Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher for Wednesday’s session:

Parekh said Nifty is slowly and steadily picking up and almost reached the 19,600 zone which is an important hurdle and needs to be breached decisively, as mentioned earlier, to bring conviction for further movement of the index and anticipate to re-test the 20,000 landmark in the coming days. The participation from the broader markets continue to be significant with mid-cap and small-cap index marching ahead with strong trend maintained and is very much important to support the index for its upward journey.

Bank Nifty, on the other hand, remained sluggish with a narrow rangebound movement hovering near the significant 50EMA level of 44,500 zone for quite some time, according to Parekh.

Also Read: Nifty Midcap 100 hits life-time high; Chalet Hotels, Nazara Technologies among key midcap stocks to watch out for

“For the index, as said earlier, it would need to breach above the 44,800-45,000 zone decisively to establish a conviction for the overall trend to turn positive and anticipate for further rise in the coming days. The support for the day is seen at 19,500 levels while the resistance is seen at 19700 levels. BankNifty would have the daily range of 44,200-45,000 levels, “said Parekh.

Vaishali recommends buying the following stocks:

Buy Central Depository Services (India) Ltd (CDSL) at ₹1,225 stoploss of ₹1,205 and a target price of ₹1,300

Buy Aditya Birla Fashion and Retail Ltd at ₹230.90 stoploss of ₹226 and a target price of ₹247

Buy Redington Ltd at ₹163.40 stoploss of ₹161 and a target price of ₹172

Nifty Spot Index

Support – 19,500/19,450

Resistance – 19,700/19,750

Bank Nifty Spot Index

Support – 44,200/44,150

Resistance – 45,000/45,050

Also Read: Top gainers, losers today: Sun Pharma, ITC, Maruti Suzuki, among most active stocks today; check full list

Updated: 06 Sep 2023, 06:17 AM IST