Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Wednesday — Sept 11

Stock market today: On Tuesday, the Indian stock market extended its gains for the second consecutive trading session. The Nifty 50 rose by 0.42 percent, ending the day above the 25,000 mark at 25,041 points. The BSE Sensex also closed higher, climbing 0.43 percent to reach 81,912 points.

Trade setup for Wednesday

On the outlook for Nifty today, Rupak De, Senior Technical Analyst at LKP Securities, said, “Nifty remained volatile throughout the day, unable to sustain levels above 25100. The RSI remained in a bearish crossover on the daily timeframe, indicating continued weakness. Sentiment is expected to stay weak in the near term unless Nifty manages a close above 25100. On the lower side, support is seen at 24900; if breached, the index may decline further towards 24750.”

On the outlook for Bank Nifty, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd., said, "Bank Nifty opened positively, successfully defending the support of the 50-day moving average and settled the day on a positive note at 51,272. Technically, on the daily scale, the index is still holding above a piercing line candle. If the index manages to sustain above 51,400 levels, a rally towards 51,800-52,000 could be possible in the short term. On the downside, immediate support is placed near the 50-Day Exponential Moving Average(DEMA), which is around 50,950, followed by the low of the piercing line candle, which is around 50,370.”

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 shares: Inox Wind, Laurus Labs, Indraprastha Gas, MTAR Technologies, and JSW Steel.

Sumeet Bagadia's stocks to buy today

1] Inox Wind: Buy at ₹241.52, target ₹255, stop loss ₹233

INOXWIND has recently experienced a significant breakthrough above the crucial resistance zone ranging from 222 to 235 on the daily chart. This breakout has been accompanied by a consolidation of the upward movement, characterized by Higher High & Higher Low Pattern. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in INOXWIND price action.

In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for INOXWIND. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.

Considering the above analysis, we recommend INOXWIND in cash at the current market price (CMP) of 241.52, setting a target of 255, and implementing a stop loss at 233.

2] Laurus Labs: Buy at ₹506.7, target ₹535, stop loss ₹488

LAURUSLABS 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.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish momentum candle signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line indicating a positive bias. Furthermore, LAURUSLABS is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying LAURUSLABS in cash at CMP of 506.7 for the target of 535 with a stop loss of 488.

Ganesh Dongre's shares to buy today

3] Indraprastha Gas: Buy at ₹540, target ₹560, stop loss ₹525

In the recent short-term trend analysis of the 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 Rs. 560. At present, the stock is maintaining a crucial support level at Rs.525. Given the current market price of Rs.540, 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 Rs. 560.

4] MTAR Technologies: Buy at ₹1810, target ₹1875, stop loss ₹1775

On the daily chart of this stock, a breakout at the Rs. 1810 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 on dips, entering the stock at a lower price point. To manage risk, a stop loss at Rs. 1775 is recommended. The target price for this strategy is Rs. 1875 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] JSW Steel: Buy at ₹938, target ₹970, stop loss ₹922

On the short-term chart, this stock is forming a rounding bottom pattern, which is inherently bullish. Currently priced at Rs. 938, this formation signals a potential upward trend. To effectively manage risk, a stop loss at Rs. 922 is recommended. The target price for this strategy is Rs. 970 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.