Stock Picks for October 18: Vaishali Parekh Recommends SBI, HEG, and SeQuent Scientific

The Indian stock market’s benchmark indices, BSE Sensex and Nifty 50, continued to face pressure for the third day in a row on Thursday, mainly due to rising tensions in West Asia affecting oil prices, strong outflows of foreign capital after China’s stimulus announcements, and disappointing second-quarter earnings from major companies. Sensex dropped by 495 points, or 0.61 percent, to close at 81,007, while Nifty 50 settled at 24,749.85, down by 221 points, or 0.89 percent.

Vaishali Parekh’s Stock Picks for Today

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, shared her insights on the market’s movement, saying that the Nifty 50 index had broken through the 24,900 level, which had been providing support for a while. The index showed a weak bias and slipped below 24,800, forming a bearish candle on the daily chart.

According to Parekh, the Nifty 50 Spot index is likely to find support at 24,600 points, while resistance may come in around 25,000 points. For the Bank Nifty Spot index, she expects a range of 50,800 to 51,800 points in today’s trade.

In her analysis, Parekh highlighted three stocks that are good options to consider buying or selling today:

1. State Bank of India (SBI)
   • Buy at ₹800
   • Target: ₹840
   • Stop Loss: ₹790
     
2. HEG Ltd
   • Buy at ₹2,572
   • Target: ₹2,650
   • Stop Loss: ₹2,290
     
3. SeQuent Scientific Ltd
   • Buy at ₹196
   • Target: ₹205
   • Stop Loss: ₹190

Stock Market Outlook for Nifty 50 and Bank Nifty

Regarding the market outlook for Nifty 50 and Bank Nifty, Parekh noted that Nifty 50 would have crucial support at the 24,700 level, which was the previous low, and would need to break above 25,000 points for any significant improvement in the market’s bias. She added that Bank Nifty formed a bearish candle on the daily chart, indicating a lower top pattern and a drop below the important 100-period moving average (MA) at the 51,380 zone, which has further weakened the index’s bias.

To shift the bias toward a more positive outlook, Bank Nifty would need to decisively break above the 52,000 zone. On the downside, crucial support is positioned near the 50,400 level.

Parekh further stated, “The support for the day is seen at 24,600 levels, while resistance is around 25,000 levels. For Bank Nifty, the daily range is expected to be between 50,800 and 51,800 points.”

With these insights, Parekh advises traders and investors to keep a close watch on these support and resistance levels and to consider the recommended stocks for potential trades today.