Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Wednesday

Stock market today: On Tuesday, August 27, Indian stock market benchmarks, the Nifty 50 and the Sensex, ended the day flat. The Nifty 50 inched up by 7 points to close at 25,017.75, while the Sensex edged up by 14 points, finishing at 81,711.76. In contrast, the mid-cap and small-cap segments saw notable gains, with the BSE Midcap and Smallcap indices each rising by half a percent.

Trade setup for Wednesday

On the outlook for Nifty today, Rupak De, Senior Technical Analyst, LKP Securities, said, “The sentiment has entered an indecisive phase as the Nifty closed with a Doji pattern on the daily chart. The significant presence of both call and put option writers at the 25,000 strike price strengthens the technical setup. As a result, the Nifty is likely to remain range-bound or might experience a slight dip in the near term. On the lower end, 24,800 could act as immediate support, while a rise above 25,100 might push the Nifty towards 25,300.”

On the outlook for the Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, said, "The Bank Nifty opened on a positive note, witnessed buying interest, and settled the day on a positive note at 51,279 levels. Technically, the Bank Nifty, on a daily scale, has formed a green candle and managed to close above the trend line resistance, indicating strength. Moreover, the index is holding firmly above its 21-DEMA support, which is placed near 50,860 levels. As long as the index holds above 50,860, a "buy on dips" strategy is advisable. On the upside, the 51,800-52,000 range will act as resistance in the short term.”

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 five stocks.

Sumeet Bagadia's stock recommendations today

1] Godrej Industries: Buy at ₹1009.6, target ₹1064, stop loss ₹973

Godrej Industries share price is currently around ₹1,009.6. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of ₹960 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹1,064 levels. On the downside, substantial support is evident near ₹973.

Furthermore, Godrej Industries shares are trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 76.19, signalling an upward trajectory and confirming an increase in buying momentum.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹973 to protect the investment in case of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, Godrej Industries stock appears to present a promising buying opportunity for those targeting a ₹1,064 price objective, contingent upon the implementation of prudent risk management measures.

2] ICICI Lombard General Insurance Co Ltd: Buy at ₹2153.35, target ₹2277, stop loss ₹2077

ICICI Lombard General Insurance Company is in a long-term uptrend and is currently trading near its all-time high of ₹2,153.35, consistently forming higher highs and higher lows on the daily chart. The stock recently formed a strong bullish candle, supported by high trading volumes, which indicates a continuation of the uptrend. After bouncing from its support zones, if the stock maintains its position above the ₹2,160 level, it could potentially move further towards an upside target of ₹2,277.

The Relative Strength Index (RSI) is at 76.54, suggesting that the stock is not yet in overbought territory, leaving room for additional upward movement. Moreover, ICICI Lombard share price has recently bounced from its short-term (20-day) Exponential Moving Average (EMA), signaling strong support at these levels.

Based on these technical indicators, we recommend taking a long position in ICICI Lombard stock at ₹2,153.35. Set a stop loss at ₹2,077 to manage risk, and aim for a target price of ₹2,277, aligning with the current favorable market sentiment.

Ganesh Dongre's shares to buy today

3] NCC Ltd: Buy at ₹328, target ₹345, stop loss ₹315

In the recent short-term trend analysis of the NCC 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 ₹345. At present, the stock is maintaining a crucial support level at ₹315. Given the current market price of ₹328, 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 ₹345.

4] Reliance Industries: Buy at ₹3002, target ₹3060, stop loss ₹3950

On the daily chart of Reliance Industries stock, a breakout at the ₹3,002 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 Reliance shares on dips, entering the stock at a lower price point. To manage risk, a stop loss at ₹2,950 is recommended. The target price for this strategy is ₹3,060 in the upcoming weeks, suggesting a potential gain as the Reliance Industries stock continues its upward trajectory.

5] Tata Power: Buy at ₹429, target ₹445, stop loss ₹420

On the short-term chart, Tata Power stock is forming a rounding bottom pattern, which is inherently bullish. Currently priced at ₹429, this formation signals a potential upward trend. To effectively manage risk, a stop loss at ₹420 is recommended.

The target price for this strategy is ₹445 in the upcoming weeks. This suggests a potential gain as the stock continues its upward trajectory, backed by the bullish technical signals.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.