Market Plunges: Vaishali Parekh Recommends 3 Stocks to Buy Today Amid Nifty 50 and Sensex Slump

The Indian stock market faced a sharp decline on Tuesday, with the 30-share BSE Sensex dropping by 692.89 points (0.87%) to close at 78,956.03. During the day, it fell even further, losing 759.54 points (0.95%) to reach 78,889.38. The NSE Nifty also fell, dropping 208 points (0.85%) to end at 24,139. Broader markets were weak too, with the Nifty Midcap index down by 0.8% and the Nifty Smallcap index down by 1.5%.

Major Losses for Investors

Investors lost a total of ₹4.52 lakh crore as the market value of all BSE-listed companies dropped by ₹4,52,565.44 crore to ₹4,45,30,265.42 crore ($5.30 trillion). HDFC Bank, the largest private lender and the heaviest stock in the Nifty 50, led the losses, falling by 3.4%.

HDFC Bank’s Impact on the Market

Global index provider MSCI increased the proportion of HDFC Bank’s shares that foreign investors can buy. However, the changes will happen in two stages—August and November—rather than all at once as the market had expected. Nuvama, a brokerage firm, initially predicted inflows of $3.2 billion to $4 billion into HDFC Bank in August, but now expects only around $1.8 billion this month.

Crude Oil Prices Drop

International crude oil prices ended their five-day winning streak due to hopes for a rate cut and reduced risk of a wider conflict in the Middle East. Benchmark Brent crude futures fell by $1.61, or 1.96%, to $80.69 per barrel.

Wall Street Rallies

Meanwhile, Wall Street had one of its best days this year, with the S&P 500 gaining 1.7% after the U.S. government reported that wholesale inflation slowed more than expected last month. The Dow Jones Industrial Average rose by 408 points (1%), and the Nasdaq composite increased by 2.3%. Starbucks Corp shares soared by 24%, adding over $20 billion to its market value after announcing a management change.

Intraday Trading Tips

Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that the Nifty 50 needs to stay above the 24,000 support zone to maintain its overall trend. For Bank Nifty, the crucial support lies near the 100-period MA at 49,600; falling below this level could weaken the trend.

Stocks to Buy Today

Parekh recommended three stocks for intraday trading on Wednesday:

1. HCL Technologies: Buy at ₹1,592.65 with a target of ₹1,660 and a stop loss of ₹1,555.
2. Dr Reddy’s Laboratories: Buy at ₹6,948.40 with a target of ₹7,320 and a stop loss of ₹6,800.
3. TajGVK Hotels & Resorts: Buy at ₹312.20 with a target of ₹330 and a stop loss of ₹304.

Market Outlook

According to Parekh, the Nifty 50 has been facing resistance around the 24,400 level for the past few sessions and has now slipped below its near-term support at 24,200. Bank Nifty is trading within a tight range, with resistance at 50,700. For today, Nifty’s support is at 24,000, and resistance is at 24,300, while Bank Nifty has a range of 49,300 to 50,300.