Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Thursday

Stock Market Today: The volatilty in the market continues as benchmark Nifty’50 index ended at 23,727.65 down 0.11% on Tuesday, pausing after Monday’s rebound. S&P BSE Sensex also ended with similar losses at 78,472.87. The Bank Nifty at 51,233.00  ended 0.16% lower. FMCG and auto Index, on the other hand, gained slightly while metal, IT and others remained under pressure. Broader indices, too, remained volatile, ending Flat. Broader indices remained muted and closed near the flatline. Though Wednesday was a market holiday, the trend will likely remain cautious moving forward.

Trade setup for Thursday

The near-term trend of Nifty is still weak, and there are no signs of any important bottom reversals forming at the lows. Immediate resistance is placed around 23900-24000 levels. The next lower support is at 23500, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

The undertone for Bank Nifty remains bearish and once breaks below 51000 can witness further selling pressure towards 50500 which is the 200dma of the index said Kunal Shah, Senior Technical and Derivative Research Analyst, Mirae Asset Sharekhan

Global markets to budget expectations

Most Global Markets along with domestic markets remained closed on Wednesday. 

The near-term market trajectory hinges on the outcome of Q3 results and the Union budget, but caution prevails due to a strong dollar, high bond yields, and concerns over rate cuts. The Rupee hitting an all-time low, further evoked the caution,said Vinod Nair, Head of Research, Geojit Financial Services. 

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stock picks for today. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi has suggested three stock ideas.

Sumeet Bagadia’s stocks to buy today

1.United Breweries Ltd– Bagadia recommends buying United Breweries at ₹2052.75, keeping Stoploss at ₹1980 for a target price of ₹2196

United Breweries is currently trading at ₹2052.75, reflecting a strong bullish momentum as the stock continues its upward reversal from recent lows. This upward movement is supported by the formation of a bullish engulfing candlestick pattern on the daily chart and a breakout above the key resistance level of ₹2050. This breakout is expected to enhance market sentiment, favoring further upside.

2.KFin Technologies Ltd– Bagadia recommends buying KFin Technologies at ₹1476.95 keeping Stoploss at ₹1420 with a target price of ₹1565

KFin Technologie is exhibiting strong bullish momentum, currently trading at an all-time high of 1524.7 levels. The chart depicts a healthy uptrend backed by improving sentiment. The stock has maintained a strong upward momentum, as highlighted by the series of higher highs and higher lows. Recently, the price has approached ₹1476.95, riding the wave of bullish strength. supported by robust trading volumes, reinforcing the strength in the stock

Ganesh Dongre’s stocks to buy today

3. Tata Chemicals Ltd– Dongre recommends buying Tata Chemicals at ₹1070, keeping Stoploss at ₹1030 for a target price of ₹1135.

The stock having a substantial support at Rs.1030, marking a crucial juncture in its recent trading. Presently, at Rs.1070, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹1030. The anticipated target for this trade is Rs.1135, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock’s anticipated rally in the weeks ahead.

4. SBI Cards and Payment Services Ltd– Dongre recommends buying  SBI Cards at ₹698 , keeping Stoploss at ₹680 for a target price of ₹740.

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around Rs. 740. At present, the stock is maintaining a crucial support level at Rs.680. Given the current market price of ₹698 a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 740

5. Kotak Mahindra Bank Ltd– Dongre recommends buying Kotak Bank at ₹1750 , keeping Stoploss at ₹1730 for a target price of ₹1790

On the daily chart of this stock, a breakout at the Rs.1750 price level has been observed, signaling a potential upward trend. Complementing this breakout, the Relative Strength Index (RSI) is still turning up, indicating increasing buying momentum. Given these technical indicators, traders can consider buying on dips, entering the stock at a lower price point. To manage risk, a stop loss at ₹1730 is recommended. The target price for this strategy is Rs.1790 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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 taking any investment decisions.