Stock picks for today: Ankush Bajaj recommends three stocks to buy on 27 March

Benchmark indices end lower in volatile session

BSE Sensex declined by 728.69 points (0.93%) to close at 77,288.50 after failing to hold early gains. NSE Nifty 50 dropped 181.80 points (0.77%), closing below the critical 23,500 mark at 23,486.85, signaling indecision. Meanwhile, Nifty Bank slipped 398.95 points (0.77%) to settle at 51,209, reflecting selling pressure in financial stocks.

Sectoral trends: Market struggles near resistance levels

The market faced rejection at higher levels, with sectoral trends remaining mixed. The auto sector held steady with a marginal gain of 0.02%, while other sectors saw fluctuations as traders adjusted positions. Investors remained cautious, closely observing key resistance and support zones.

Stock-specific highlights: Gains and declines

Despite the market’s struggle to break out, some heavyweight stocks managed to post gains. IndusInd Bank rose 2.86%, leading the pack; Trent advanced 2.64%, reflecting resilience in financial services; and HCL Tech rose 0.52%, showing stability in the IT sector.

Also read: Is the cement sector consolidation at its fag end?

Selling pressure weighed on select stocks. NTPC declined 3.35%; Tech Mahindra dropped 2.69%; and Cipla fell 2.32% as traders booked profits near resistance levels.

Key levels to watch

With the market facing rejection at higher levels and Nifty closing below 23,500, traders are closely monitoring support zones. The overall sentiment remains cautious as the market struggles to find direction within a crucial range. The next few sessions will be crucial in determining whether the market breaks out or continues consolidating at current levels.

Indian stock market outlook

Today is the weekly and monthly expiry for Nifty. Based on open interest (OI) data analysis, the maximum OI is seen at 23,600 on the call side and 23,400 on the put side, indicating a likely range-bound market of around 200 points, with Nifty closing at 23,510. We have witnessed a strong rally this week, so if a seller trap occurs today, it is more likely to happen on the put side as many option sellers have written puts expecting the market to remain on the higher side.

Also read: Nifty rejig and the problem with index-based valuation

On the daily chart market has closed above its 20/50/100/200 EMAs and in a one-hour time frame the market closed below its 20 EMA, showing a mild bearish move.

Nifty 50’s technical indicators present a mixed outlook. While the daily chart shows the index trading above key moving averages, the neutral RSI suggests caution.

Technical indicators: Nifty on the hourly chart

On the hourly chart, the relative strength index (RSI) is at 46 and downward sloping, suggesting the possibility of a correction. Additionally, the moving average convergence divergence (MACD) has also generated a sell signal, as the MACD line has crossed below the MACD signal line.

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Also read: BHEL rides thermal power revival—can it keep up with demand?

Relative strength index (RSI): The 14-period RSI stands at 46, indicating bearishness.

Stochastic oscillator (STOCH): The STOCH (14,1,3) is at 9, also signaling oversold conditions.

Moving average convergence divergence (MACD): MACD negative crossover showing short signal.

Average directional index (ADX): The ADX (14) is at 54, supporting strong momentum.

Three stocks to buy today, recommended by market expert Ankush Bajaj

RBL Bank

Buy at ₹179 | Target ₹188- ₹192 | Stop loss ₹173.80

The stock gave a rectangle breakout yesterday. Also, one can see a long consolidation on the chart between 150 and 180. The one-hour RSI is at 64, indicating strong momentum.

Solar Industries India Ltd

Buy at ₹10,980 | Target ₹11,375 | Stop loss ₹10,725

On the hourly chart, the stock has given a falling wedge breakout at the 10,000 level and has rallied up to 11,000. The bullish momentum is still intact on the hourly chart, and the stock continues to form a higher-high-and-higher-low pattern.

Pidilite Industries Ltd

Buy at ₹2,845 | Target ₹2,955-2,975 | Stop loss ₹2,760

The stock’s hourly RSI is at 60. It has also given a breakout on the upper side from a falling wedge channel pattern. Volume was high yesterday, and strong buying was seen in the last half-hour of the trading session. A good rally is expected in this stock in the coming days.

Also read: DLF sees room for growth, but is it too early to be optimistic?

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

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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.