Stock market today: Trade setup for Nifty 50 after US Fed meeting, seven stocks to buy or sell on Thursday

US Fed meeting outcome in focus

Speaking on how the US Fed meeting outcome would impact the Indian stock market, Sugandha Sachdeva, Founder at SS WealthStreet said, “In the US Fed meeting yesterday, Fed chair Jerome Powell hinted a willingness to cut interest rates despite sticky inflation, it may initially boost stock prices. Lower interest rates tend to be positive for stocks as they can stimulate economic activity and corporate profits.” She said that Jerome Powell’s dovish stance on the US Fed rate has weakened the US dollar and the trend is expected to continue in the near term.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 2

Trade setup for Thursday

Speaking on the outlook for the Nifty 50 today, Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta said, “Domestic benchmark indices opened higher on Tuesday, driven by positive global cues. Due to strong buying interest, the Nifty registered a fresh all-time high of 22,783.35. But following that, there was a significant amount of profit booking, and the index ended the day lower at 22,605. Moreover, the Volatility Index, India VIX, surged by 5.19% ahead of the US Federal meeting on interest rates. From a technical standpoint, the index on a daily scale has formed a bearish candle near the previous high. Thus, 22,780-22,800 will act as a strong hurdle for the index in the short term. As long as the index remains below 22,800, a short-term retracement towards 22,500-22,300 could be possible. If the index sustains above 22,800, then the rally could stretch towards 23,000-23,100 levels. For the short term, 22,500 and 22,300 will act as strong support levels, whereas 22,800 and 23,000 will act as barriers for the index.”

On the outlook for the Bank Nifty today, Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said, “Bank Nifty has managed to hold on to the 50% Fibonacci retracement level 47440 and witnessed a pullback during the last hour of trade. We expect the pullback to continue till 48000 – 48200 over the next few trading sessions. The crucial support level is placed at 47300.”

Buy or sell stock ideas by experts

On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher; and Mitesh Karwa, Research Analyst at Bonanza Portfolio — recommended six buy or sell stocks for today.

Sumeet Bagadia’s stocks to buy today

1] Voltas: Buy at ₹1475, target ₹1555, stop loss ₹1433.

Voltas share price daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company’s recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

2] Tata Motors: Buy at ₹1008, target ₹1065, stop loss ₹975.

Tata Motors share is exhibiting strong bullish momentum, currently trading at ₹1007.90 levels. The recent breakout above the crucial resistance at ₹1000 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Shiju Koothupalakkal’s shares to buy today

3] HDFC AMC: Buy at ₹3894.65, target ₹4050, stop loss ₹3800.

The stock has indicated a positive bullish candle formation to come out of the consolidation period with rising volume participation and has improved the bias to anticipate for further rise in the coming sessions. The RSI indicating a trend reversal is on the rise and has much upside potential from the current rate. We suggest buying the stock for an initial target of ₹4050 level keeping the stop loss of ₹3800 level.

4] HFCL: Buy at ₹100.50, target ₹107, stop loss ₹98.

The stock has indicated a positive bullish candle formation on the daily chart with significant volume participation improving the bias and is expected to rise further. The RSI is on the rise and with much upside potential visible, can carry on with the positive move further ahead. We suggest buying the stock for an initial target of 107 keeping the stop loss of 98 level.

5] Balkrishna Industries: Buy at ₹2429.90, target ₹2550, stop loss ₹2375.

The stock has indicated a higher low formation pattern on the daily chart taking support near the ₹2310 level and moving past the important 100-period MA of ₹2424 levels to improve the bias and anticipating further upward move in the coming days. The RSI is well placed and on the rise indicating a trend reversal and can carry on with the positive move further ahead. With the chart looking good, we suggest buying the stock for an initial target of ₹2550 keeping the stop loss at ₹2375 level.

Mitesh Karwa’s buy or sell stocks

6] Gokaldas Exports: Buy at ₹881 to ₹883, target ₹950, stop loss ₹840.

Gokaldas Exports share is seen to be breaking out of a bullish pattern on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets up to ₹950. One can initiate buy-on-dip in the range of ₹881 to ₹883 with a stop loss below ₹840 on a daily closing basis.

7] Bank of Baroda: Buy at ₹280 to ₹281, target ₹396, stop loss ₹272.

BoB share price is seen to be breaking out of a downwards sloping trendline on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets up to Rs.296. One can initiate buy-on-dip in the range of ₹280 to ₹281 with a stop loss below ₹272 on a daily closing basis.

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.

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Published: 02 May 2024, 07:20 AM IST