Indian markets started this week’s trading session on a positive note as investors picked beaten-down stocks. Last week, both Sensex and Nifty 50 dipped more than 2% each due to bearish global cues. Although, the broader market’s trajectory is volatile as investors are on wait-and-watch mode over the US Federal Reserve’s upcoming policy meeting. The street expects a third huge rate hike from FOMC in the meeting between September 20-21. Currently, recession fear over global economic slowdown has kept markets mood on a cautious tone. Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher has recommended ‘buy’ on two stocks in the trading session on September 20.
On Monday, the Nifty 50 ended at 17,622.25 higher by 91.40 points or 0.52%. Bank Nifty finished at 40,904.40 surging by 127.60 points or 0.31%. While Sensex closed at 59,141.23 up by 300.44 points or 0.51%. Upside in FMCG, auto, and banking stocks offset the selloffs in capital goods and metal stocks.
Giving Nifty and Bank Nifty outlook for September 20, Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “Nifty after witnessing a volatile opening session hitting the low of 17430 levels regained and maintained the zone near 17600-17660 levels for the rest part of the trading session. Nifty index need to cross the 17680-17700 zone for some improvement in the bias and expect for further upward move.
Further, Parekh said, BankNifty also moved within a narrow range finding resistance near 41150 zone and has got the crucial near term support at 40500 zone. The overall bias and sentiment is maintained cautiously positive as of now till further clarity and confirmation established. However, the support for the day is seen at 17500 while the resistance is seen at 17750. Bank Nifty would have the daily range of 40500-41400 levels.
Parekh sees Nifty to have support between 17500/17450 and resistance 17750/17800. While Nifty Bank is seen to have support between 40500/40450 and resistance 41400/41450.
Prabhudas Lilladher has recommended two stocks to buy on September 20.
BUY Colgate Palmolive at ₹1579 with a stop loss of ₹1558 and a target of ₹1608
BUY SBI Card at ₹942 with a stop loss of ₹927 and a target of ₹968
The views and recommendations made above are those of individual analysts, and not of Mint.
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