Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Wednesday — September 4

Stock market today: Frontline indices - the Sensex and Nifty 50 ended the day relatively unchanged, on Tuesday. The Sensex began at 82,652.69, slightly above its previous closing of 82,559.84. It moved within a narrow range of approximately 274 points and finished 4 points lower at 82,555.44. The Nifty 50 opened at 25,313.40, marginally above its prior close of 25,278.70, and reached an intraday high of 25,321.70 and a low of 25,235.80. It ended the day up by just 1 point at 25,279.85.

Trade setup for Tuesday

On the Nifty outlook, Rupak De, Senior Technical Analyst, LKP Securities, said, “Nifty remained rangebound, closing positively for the 14th consecutive day. It encountered resistance at 25,300, highlighting strong call option writing at that strike. Moving forward, only a decisive move above 25,300 might trigger a rally toward 25,500. On the downside, support is positioned at 25,200 and 25,000.”

On the Bank Nifty outlook, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, said, "The Bank Nifty began the day on a strong note but encountered profit booking in the first half. However, the index witnessed strong buying interest in the second half and settled the day positively at 51,689 levels. Technically, on the daily chart, the index formed a green candle with a long lower shadow, indicating strength. On the downside, the 21-Day Exponential Moving Average (DEMA) is near 51,060 levels. As long as the index remains above 51,060, a 'buy on dips' strategy is recommended. On the upside, the Bank nifty might attempt to test the levels of 52000, which correspond to the double bottom pattern target.”

Global markets today

“Amid mixed global signals and the absence of significant new catalysts, aside from the anticipated Fed rate cut, which is already factored in, the domestic market took a breather. Mild caution emerged due to a recent slowdown in manufacturing activities, which indicates a slowdown in demand. However, predictions of an above-normal monsoon extending through September and accelerated capex by the GoI in the H2FY25 boosted consumption and rural based stocks like FMCG stocks,” said Vinod Nair, Head of Research, Geojit Financial Services.

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: Kajaria Ceramics, ICICI Bank, Zomato, JK Lakshmi Cement, and Finolex Cables.

Sumeet Bagadia's stock recommendations today

1] Kajaria Ceramics: Buy at ₹1386.2, target ₹1500, stop loss ₹1328

KAJARIACER is currently trading at 1386.2 and is in a consolidation phase. After reaching an all-time high, the stock has stabilized near its demand zone. Recently, the stock broke out of a falling trend line on the daily chart and formed a double-bottom pattern, signaling a potential trend reversal supported by a bounce. If KAJARIACER can sustain above the 1400 level, it may continue its upward trajectory towards the 1500 mark.

The Relative Strength Index (RSI) is around 50.73, with a positive crossover, indicating increasing buying momentum. Additionally, KAJARIACER has rebounded from its long-term (200-day) EMA and has moved above its short-term (20-day) EMA and medium-term (50-day) EMA levels, further reinforcing the strength of the current uptrend.

Given the current technical indicators and price action, KAJARIACER appears well-positioned above the resistance level for a potential upward move. Investors might consider buying on dips, with a stop loss set at 1328 to manage risk. The target price of 1500 aligns with resistance levels and offers a favorable risk-reward ratio, making this a promising trading opportunity.Global

2] ICICI Bank: Buy at ₹1247.70, target ₹1320, stop loss ₹1210

ICICI Bank has demonstrated noteworthy resilience, staging a strong move towards its all-time high levels. The stock has a strong support at 1210 in close proximity to its 20-Day Exponential Moving Average (EMA). The stock, currently trading at 1247.70, exhibits a positive trajectory, indicative of underlying strength. Significantly, the stock is trading above key moving averages reinforces the stock's robust position.

An observable hurdle surfaces around 1258, constituting a minor resistance which is also all-time high for the stock. A successful breach of this level holds the potential to propel the stock towards the target of 1320 and beyond. This analysis reflects the stock's resilience, technical strength, and the possibility of continued upward movement, offering valuable insights for investors navigating the dynamic market landscape.

Based on the above analysis we expect ICICIBANK to move higher towards 1320 and hence we recommend buying ICICIBANK at CMP of 1247.70 with a SL of 1210.

Ganesh Dongre's shares to buy today

3] Zomato: Buy at ₹248, target ₹260, stop loss ₹242

In the recent short-term trend analysis of the Zomato 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. 260. At present, the stock is maintaining a crucial support level at Rs.242. Given the current market price of Rs.248, 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. 260.

4] JK Lakshmi Cement: Buy at ₹788, target ₹815, stop loss ₹775

On the daily chart of this stock, a breakout at the Rs. 788 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. 775 is recommended. The target price for this strategy is Rs. 815 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Finolex Cables: Buy at ₹1440, target ₹1520, stop loss ₹1410

On the short-term chart, this stock is forming a rounding bottom pattern, which is inherently bullish. Currently priced at Rs. 1440, this formation signals a potential upward trend. To effectively manage risk, a stop loss at Rs. 1410 is recommended. The target price for this strategy is Rs. 1520 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.