Buy or sell: Amid ‘Black Monday’ rant, Vaishali Parekh recommends three stocks to buy today — 7 April 2025

Buy or sell stocks: Following Donald Trump's tariffs shock, the Indian stock market crashed heavily on Friday, triggering fear of ‘Black Monday 1987’. The Nifty 50 index tanked 345 points and closed at 22,904, the BSE Sensex nosedived 930 points and closed at 75,364, and the Bank Nifty index went off 94 points and finished at 51,502. The BSE Small-cap index crashed 3.43%, while the Mid-cap index corrected around 3.08% during Friday deals.

The Nifty Mid-cap 100 and Small-cap 100 indices plunged 2.91% and 3.56%, respectively. The broader market witnessed a decisive shift towards declining shares, with the BSE advance-decline ratio at 0.40. Barring the Nifty FMCG index sectorally, all sectors closed in negative territory. Metal, Pharma, Oil & Gas, Realty, and IT sectors bore the brunt of the sell-off, registering the most substantial losses.

Stock market today

Vaishali Parekh, Vice President—Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment has turned weak as the Nifty 50 index slipped below 50-DEMA support at 23,120. The Prabhudas Lilladher expert said the frontline index is also decisively below the psychological support at 23,000.

Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, "The Nifty 50 index tanked below the important 50-DEMA level of 23,120 zones on the back of weak cues from the Tariff imposed by the US and moving below the 23000 zone has weakened the bias, once again with the sentiment maintained with a very cautious approach. The zone near the 22,800 would be the crucial support level below which the index would once again come inside the descending channel range, opening the gates on the downside."

"The Bank Nifty index once again indicated resilience amid the weak scenario and closed above the 51500 zone with strength indicated and with overall bias maintained positive, need to pick up and breach above the 52000 zone decisively to trigger a fresh upward move in the coming days. The coming 2-3 sessions would be crucial, deciding the further directional move of the indices," said Parekh.

Parekh said that support for Nifty today is at 22,800, while the resistance is at 23,100. The Bank Nifty would have a daily range of 51,200 to 52,000.

Vaishali Parekh's stock recommendations today

Regarding stocks to buy today, Vaishali Parekh recommended these three buy or sell stocks: Zen Technologies, Pidilite Industries, and Asian Paints.

1] Zen Technologies: Buy at ₹1445, target ₹1520, stop loss ₹1400;

2] Pidilite Industries: Buy at ₹2903, target ₹3000, stop loss ₹2850; and

3] Asian Paints: Buy at ₹2352, target ₹2430, stop loss ₹2300.

Black Monday 1987

On Black Monday, October 19, 1987, markets worldwide crashed, with the US Dow Jones Industrial Average plunging 22.6%.

Fast-forward nearly a century. On Sunday, April 6, 2025, Jim Cramer, an American TV personality and market analyst, warned of a similar 'bloodbath' on Monday, April 7, owing to US President Donald Trump's tariff tantrums. Cramer encouraged the POTUS to 'reach out' to countries that have not imposed retaliatory tariffs.

October 19, 1987, also known as 'Black Monday', saw the Dow Jones Industrial Average (DJIA) plummet by 22.6% in just one day. This event triggered a global stock market downturn, cementing Black Monday as one of the most infamous days in financial history. The S&P 500 experienced an even steeper decline, falling 30% on the same day.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.