Today’s Stock Market: Trade Setup for Nifty 50 Ahead of Q1 2024 Results and Five Stocks to Buy or Sell on Friday
Stocks to buy today: Experts have recommended buying these five buy-or-sell stocks: Bharat Dynamics, Aurobindo Pharma, Exide Industries, Bank of Baroda, and HCL Technologies
Stock market today: Following strong global market sentiments on overwhelming gains on Wall Street, the Indian stock market finished higher for the second straight session. The Nifty 50 index closed marginally higher at 24,302, whereas the BSE Sensex ended 62 points up at the 80,049 mark. The Bank Nifty index edged 14 points higher and closed at 53,103. Cash market volumes on the NSE rose around 2 percent to ₹1.38 lakh crore. The broad market indices rose more than the Nifty 50 index even as the advance-decline ratio fell to 1.19:1.
Trade setup for Friday
On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “The overall trend of Nifty remains positive as per smaller to larger timeframe chart. Though Nifty placed at the highs, there is still no confirmation of any reversal pattern forming at the new all-time highs. However, having placed at the hurdle of around 24400 levels (1.618% Fibonacci Extension), this consolidation/minor dip is possible for the coming sessions. Immediate support is at 23,990 —10day EMA.”
On the outlook for the Bank Nifty today, Om Mehra, Technical Analyst at SAMCO Securities, said, “Bank Nifty marked a new high of 53,357.70 and settled at 53,103.70, ending the day almost flat. The index found support from the rising trendline, highlighting the positive trend. With the opening and day’s high remaining identical, a short-term pullback is possible if Bank Nifty slips below 52,800, potentially heading towards 52,200. The daily RSI is displaying strength and stands at the 67 level.”
On the outlook for the Indian stock market today, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, “The Release of pre-quarterly business updates is giving confidence in healthy Q1 earnings. Sentiments got a further boost in the hope of a rate cut as the recent data points indicate the softening of the US economy. We expect this ongoing momentum to continue and Nifty to consolidate in a broader range. Investors would watch for the US non-farm payroll and unemployment rate, which will be released today.”
Buy or sell stock ideas by experts
Regarding stocks to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended buying these five buy-or-sell stocks: Bharat Dynamics Limited, Aurobindo Pharma Limited, Exide Industries, Bank of Baroda, and HCL Technologies.
Sumeet Bagadia’s stocks to buy today
1] Bharat Dynamics: Buy at ₹1684, target ₹1770, stop loss ₹1625.
Bharat Dynamics share price is currently trading at ₹1683.9. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹1650 and is rising quickly on the upside with substantial volume. There are expectations of upward movement, potentially reaching the ₹1770 mark. On the downside, considerable support is evident near ₹1625.
2] Aurobindo Pharma: Buy at ₹1254.65, target ₹1355, stop loss ₹1200.
Aurobindo Pharma’s share price exhibits resilience, having rebounded from the support range and passed a small resistance of ₹1225 levels, which is also close to its 20-day EMA levels, indicating underlying strength in the stock. Currently trading at ₹1254.65 levels, it maintains positions above crucial moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, signalling a bullish sentiment.
Ganesh Dongres’s buy or sell stocks
3] Exide Industries: Buy at ₹566, target ₹585, stop loss ₹545.
On the daily chart of this stock, a breakout at the ₹566 price level has been observed, signalling 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 of ₹545 is recommended. The target price for this strategy is ₹585 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.
4] Bank of Baroda: Buy at ₹270, target ₹282, stop loss ₹264.
On the daily chart, the stock has shown a short-term reversal pattern. Specifically, a bullish engulfing pattern has formed, a strong indicator of potential upward movement. This technical pattern is considered bullish, suggesting that the stock may experience a price rise. Given this setup, traders might consider buying this stock, setting a stop loss at ₹264 to manage risk. The target price for this trade is ₹282, providing an opportunity for gains as the stock continues to demonstrate bullish behaviour.
5] HCL Technologies: Buy at ₹1520, target ₹1570, stop loss ₹1470.
In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹1570. So, holding the support level of ₹1470, this stock can bounce toward ₹1570 in the short term. Hence, the trader can use a stop loss of ₹1470 for the target price of ₹1570.
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