Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Monday — Sept 2

Stock market today: Following strong global markets, the Indian stock market ended higher for the twelfth straight session on Friday last week. The Nifty 50 index registered its best winning streak since its launch in 1996 by rising on the 12th day in a row. The 50-stock index finished 83 points higher at the 25,235 mark, the BSE Sensex shot up 231 points and closed at 82,365, whereas the Nifty Bank index ended 198 points higher at 51,351.

Due to index rebalancing volumes, cash market volumes on the NSE were around 71% higher than the previous day. The broad market indices rose more than the Nifty even as the advance-decline ratio rose to 1.39:1.

Trade setup for Monday

On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty remains positive, but the market cannot gather sharp upside momentum into new highs. One may expect further consolidation or a minor dip from near the resistance of 25,300 to 25,400 levels. Immediate support for Nifty today is at 25,100."

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty began the week on a high tone, held solid throughout the week, and settled the week on a positive note at 51,351 levels. Technically, on a daily chart, the index remained above the trend line support and stood firmly above 21- DEMA, near 50,950 levels. As long as the index remains over 50,950, a 'buy on dips' strategy is recommended. On the upside, the rally might extend to 51,800-52,000 levels."

Global markets today

In the early morning session on Monday, Asian markets mostly followed Friday's rally on Wall Street, with Japan's Nikkei up 1.0% and adding to last week's 8.7% bounce. MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.1%, while South Korean stocks were flat. Cash treasuries were untraded for the holidays, while Treasury futures were moved a little. Ten-year yields stood at 3.914% after rising due to Friday's inflation and spending data.

Stocks to buy today

Regarding shares 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 stocks: Safari Industries, PNB Housing Finance, Axis Bank, Balrampur Chini, and Birlasoft.

Sumeet Bagadia's stocks

1] Safari Industries: Buy at ₹2476.20, target ₹2615, stop loss ₹2390.

SAFARI is currently trading at ₹2476.20. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹2400 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹2615 levels. On the downside, considerable support is evident near ₹2390.

2] PNB Housing Finance: Buy at ₹977.45, target ₹1030, stop loss ₹940.

PNB Housing Finance 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.

Ganesh Dongre's shares to buy today

3] Axis Bank: Buy at ₹1175, target ₹1215, stop loss ₹1145.

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 Rs. 1215. The stock is currently maintaining a crucial support level at ₹1145. Given the current market price of ₹1175, 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 ₹1215.

4] Balrampur Chini: Buy at ₹600, target ₹628, stop loss ₹580.

On the daily chart of this stock, a breakout at the ₹600 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 ₹580 is recommended. The target price for this strategy is ₹628 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Birlasoft: Buy at ₹670, target ₹715, stop loss ₹650.

A notable bullish reversal pattern has emerged in the stock's short-term trend analysis. This technical pattern indicates the potential for a temporary retracement in the stock's price, with a possible target of around ₹715. Currently, the stock is holding above a crucial support level at ₹650. With the stock trading at ₹670, a buying opportunity presents itself. Investors may consider purchasing the stock at its current price, expecting a rise toward the identified target of ₹715. This suggests a favourable risk-reward scenario, as the stock has a solid support base and a clear upside target.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.