Stock market strategy: Trade setup for Nifty 50 to India VIX, five stocks to buy or sell on Thursday — August 8

Stock market today: After showing sharp weakness on the rise on Tuesday, the Indian stock market shifted into a sustainable upside bounce on Wednesday. The Nifty 50 index finished 322 points upward at 24,315, whereas the BSE Sensex ended 874 points higher at 79,468. The Bank Nifty index gained 472 points and closed at 50,221. However, the broad market outperform the frontline indices. The small-cap index gained 2.39 per cent, while the mid-cap index surged 2.63 per cent.

Trade setup for Thursday

On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty seems to have reversed on the upside. A follow-through move is required to consider this a short-term bottom reversal pattern. A decisive move above 24,400 could pull Nifty towards another resistance of 24,700 quickly. Immediate support for Nifty today is at 24,050."

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty index opened with a gap up and saw profit booking in the first half. However, a late recovery helped Bank Nifty conclude the day positively, at 50,119 levels. Technically, daily, the index has formed a homing pigeon candlestick pattern, a bullish reversal pattern. According to this pattern, if Bank Nifty sustains above yesterday's high of 50,690, it may experience fresh bullish momentum. Conversely, 49,650 will support the Banknifty in the short run."

India VIX today

According to Sumeet Bagadia, Executive Director at Choice Broking, the India VIX Index has dipped around 14 per cent after skyrocketing on Monday this week. This could be possible as the Nifty 50 index has managed to sustain above its 50-DEMA support, placed at around 23,950 to 23,980. However, the Choice Broking expert said that Wednesday's rise in the Indian stock market would remain a relief rally until the India VIX Index comes below 12.

Stocks to buy today

About intraday stocks, stock market expert Sumeet Bagadia, Executive Director at Choice Broking, recommends the following four stocks to buy today: Alkem Laboratories, Hindustan Petroleum Corporation, New India Assurance Company, Laurus Labs, and DLF.

Sumeet Bagadia's stock recommendations today

1] Alkem Laboratories: Buy at ₹5512.25, target ₹5950, stop loss ₹5300.

Alkem Laboratories shares, currently trading at ₹5512.25, have exhibited a notable rebound from a robust support base around ₹5300, aligning closely with its 20-day Exponential Moving Average (EMA). The stock's resilience at this support level is cheerful, emphasizing its capacity to move higher.

2] HPCL: Buy at ₹397.20, target ₹425, stop loss ₹383.

HPCL's share price is currently trading at ₹397.20 and seems to be on the verge of breaking out from a cup-and-handle pattern on the daily chart. The pattern is backed by a significant increase in trading volume, suggesting a potential breakout. If the price successfully closes above the ₹400 level, it has the potential to reach short-term targets of ₹425.

Ganesh Dongre's shares to buy today

3] New India Assurance Company: Buy at ₹265, target ₹280, stop loss ₹255.

A notable bullish reversal pattern has emerged in the stock's recent short-term trend analysis. This technical pattern suggests a temporary retracement in the stock's price, potentially reaching around ₹280. The stock is currently maintaining a crucial support level at ₹255. Given the current market price of ₹265, a buying opportunity is emerging. This suggests that investors consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹280.

4] Laurus Labs: Buy at ₹433, target ₹450, stop loss ₹425.

We have seen significant support in this stock, around ₹425. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹433 price level, which may continue its rally till its next resistance level of ₹450. So traders can buy and hold this stock with a stop loss of ₹425 for the target price of ₹450 in the near term.

5] DLF: Buy at ₹846, target ₹860, stop loss ₹835.

We have seen significant support in this stock, around ₹425. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹433 price, which may continue its rally till its next resistance level of ₹450. So traders can buy and hold this stock with a stop loss of ₹425 for the target price of ₹450 in the near term.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.