Stock market today: Trade setup for Nifty 50, Q1 results today to Budget 2024, five stocks to buy or sell on Monday

Stock market today: After a sharp move on Thursday, the Indian stock market witnessed a decisive selloff on Friday last week. Stock market experts believe the selloff on Dalal Street was caused by weak global market trends and rising US-China tension. The Nifty 50 index corrected 269 points and closed at 24,530, while the BSE Sensex lost 738 points and ended at 80,604. The Bank Nifty index nosedived 355 points and finished at 52,265. Cash market volumes on the NSE were down 8.8 percent, hindered by tech outages. The broad market indices fell more than the Nifty even as the advance-decline ratio fell to 0.18:1, the lowest in 1.5 months.

Trade setup for Monday

On the outlook of Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty seems to have reversed from the all-time highs. The formation of candle patterns as daily and weekly indicates the possibility of more weakness in the market ahead. The next lower supports to be watched are around 24,200 and 24,000. Immediate resistance for Nifty today is placed at 24,850."

On the outlook of Bank Nifty today, Om Mehra, Technical Analyst at SAMCO Securities, said, "Bank Nifty ended the session at 52,265.60, down by 0.67%. Bank Nifty formed a bearish harami pattern on the daily candle which indicates short-term weakness. Bank Nifty is near its support zone, around 52,100; if this level is broken on a closing basis, it could extend towards the 51,700 zone. With the daily MACD indicator slightly skewed to the negative side, a sell-on-rise strategy would be suitable for the short term."

Budget 2024 in focus

Speaking on the outlook for the Indian stock market today, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, "Overall markets got impacted due to new tensions between US and China, which resulted in global profit booking. In addition, Microsoft's outage impacted a lot of large organizations, airlines, and stock exchanges globally. Investors are also cautious ahead of Union Budget 2024 this week on 23rd July, which will provide the next direction to the market. Earnings season will also pick up pace, resulting in stock-specific actions. Besides the Budget 2024, US Core PCE and PMI data will be key events to monitor."

Q1 results today

Forty-four companies listed on the Indian bourses will declare their Q1 2024 results on Monday. Those companies include IOB, IDBI Bank, Suzlon Energy, UCO Bank, Coforge, Zensar Technologies, Jana Small Finance Bank, and Cyient DLM.

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, recommend buying these five buy-or-sell stocks: Kalyan Jewellers, Emami, HCL Technologies, Ashok Leyland, and Max Financial Services Ltd or MFSL.

Sumeet Bagadia's stocks to buy today

1] Kalyan Jewellers: Buy at ₹526, target ₹565, stop loss ₹505.

Kalyan Jewellers share price has broken out of its consolidation phase and is trending upwards with higher highs and higher lows, signalling strong bullish momentum. Recent candles show minimal lower wicks, indicating robust buyer control. Increased volume supports the breakout, suggesting the stock may continue upward if it maintains its current trajectory above recent highs.

2] Emami: Buy at ₹800, target ₹860, stop loss ₹765.

Emami share currently displays bullish continuation patterns, rebounds from support levels, and then makes upward solid moves. The stock clearly shows an upward trend and strong bullish characteristics. Recently, it has experienced a significant price surge, supported by a noticeable increase in trading volume. This suggests strong market interest accompanying the recent price rise.

Ganesh Dongre's buy or sell stocks

3] HCL Technologies: Buy at ₹1595, target ₹1630, stop loss ₹1560.

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 ₹1630. The stock is currently maintaining a crucial support level at ₹1560. Given the current market price of ₹1595, 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 ₹1630.

4] MFSL: Buy at ₹1008, target ₹1045, stop loss ₹990.

A breakout has been observed on the daily chart of this stock, 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 ₹990 is recommended. The target price for this strategy is ₹1045 in the near term, suggesting a potential gain as the stock continues its upward trajectory.

5] Ashok Leyland: Buy at ₹224, target ₹230, stop loss ₹219.

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 ₹219 to manage risk. The target price for this trade is ₹230, providing an opportunity for gains as the stock continues to demonstrate bullish behaviour.

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