Vaishali Parekh’s Top Stock Picks: Buy or Sell Nifty 50 and Bank Nifty Amid Market Slump – Intraday Tips for October 7

India’s main stock market indices, Sensex and Nifty 50, dropped for the fifth day in a row on Friday, continuing their losses due to volatile trading and rising geopolitical tensions in the Middle East. The Nifty 50 index fell by 0.93%, closing at 25,014.60 points, compared to the previous close of 25,250.10 points.

Similarly, the BSE Sensex ended the day 0.98% lower, finishing at 81,688.45 points, down from 82,497.10 points in the previous session.

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Vaishali Parekh’s Stock Picks for Today:

Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, noted that Nifty experienced its biggest decline of 2024, dropping nearly 1,200 points. She said the market is showing a weak trend, and traders are approaching it with caution. According to her analysis, the Nifty 50 Spot index could find support at 24,800 points, while resistance stands at 25,250 points. The Bank Nifty index is expected to trade in a range of 51,000 to 52,000 points today.

For today’s trading, Parekh suggested three stocks to either buy or sell:

1. Exide Industries Ltd. (EXIDEIND):

• Recommendation: Buy
• Entry Price: ₹503
• Target Price: ₹520
• Stop Loss: ₹485

2. Mahindra and Mahindra Ltd. (M&M):

• Recommendation: Sell
• Entry Price: ₹3,020
• Target Price: ₹2,945
• Stop Loss: ₹3,090

3. ICICI Securities Ltd. (ISEC):

• Recommendation: Buy
• Entry Price: ₹877
• Target Price: ₹920
• Stop Loss: ₹860

Stock Market Outlook:

Regarding Nifty 50 and Bank Nifty, Parekh mentioned that Nifty has recorded its largest weekly fall of 2024, with a drop of nearly 1,200 points, signaling a weak market sentiment. The index is now in a sensitive position, with its next major support level around the 100-period moving average (MA) at 24,300 points. If this level is breached, the next significant support is at the 200-period MA around 23,200 points.

Bank Nifty has also seen heavy profit booking and has fallen below the crucial 50-EMA (exponential moving average) level of 51,900 points, further weakening its outlook. The next support is around 49,700 points, with the 200-period MA support at 49,200 points. Parekh advises traders to remain cautious and wait for more clarity before making decisions.

For today, Parekh expects the Nifty 50 Spot to find support at 24,800 points, with resistance at 25,250 points. The Bank Nifty index is predicted to move within a range of 51,000 to 52,000 points.