Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 20

Buy or sell stocks: The Indian stock market indices closed in the red for the fourth consecutive day on Thursday, December 19. The indices crashed in intraday trading after the US Federal Reserve signalled the pace of rate cuts would likely be slower in the coming year. The Nifty 50 index closed 1.02 per cent lower at 23,951.70 points, compared to 24,198.85 points at the previous market close.

The BSE Sensex closed 1.20 per cent lower at 79,218.05 points on Thursday, compared to 80,182.20 points at the previous market close. 

Vaishali Parekh's stocks to buy today

Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, said the Nifty remained range-bound on Thursday, to end below the psychological mark of 24,000-mark. The trend is turning weak, and the bias is maintained with a very cautious approach. Parekh estimates the Nifty 50 Spot index to find support at 23,800 points and face resistance at 24,200 points. The Bank Nifty index will likely move in the 51,000 to 52,000 range.

Parekh recommended three buy-or-sell stocks for Friday: West Coast Paper Mills Ltd, Bharat Heavy Electricals Ltd (BHEL), and Lupin Ltd. 

Stock market today

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty, after witnessing a huge gap down opening near the 23,870-zone almost to touch the important 200-period MA at 23,830 level, remained range-bound for the remaining part of the session to end below the psychological mark of 24,000, with trend turning weak and the bias maintained with a very cautious approach.”

“The 23,800-level (200 period-MA) would be the important support, below which the 23,600-zone of the channel pattern would be the next crucial level to be watched for,” said the stock market expert.

“Bank Nifty opened below the important 100-period MA in the morning session with weak bias, and has the next crucial support of the 200-period MA at 50,500 levels, which needs to be sustained, failing which the overall trend would turn bearish,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,800 points, while the resistance lies at 24,200 points. The Bank Nifty index would have a daily range of 51,000 to 52,000. 

Buy or sell stocks by Vaishali Parekh

1. West Coast Paper Mills Ltd. (WSTCSTPAPR): Buy at ₹578.70; Target at ₹607; Stop Loss at ₹565.

2. Bharat Heavy Electricals Ltd. (BHEL): Buy at ₹242.25; Target at ₹254; Stop Loss at ₹236.

3. Lupin Ltd. (LUPIN): Buy at ₹2,162.85; Target at ₹2,250; Stop Loss at ₹2,117.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.