Stock market today: Trade setup for Nifty 50 to global markets outlook, five stocks to buy or sell on Monday — Sept 23

Stock Market Today:  The stock markets that started on a soft note last week with a rangebound movement, ended with a strong rally on Friday.  Benchmark Nifty-50 index and the S&P BSE Sensex closed at record highs of 25,790.90 and 84,544.31. The US federal reserve surprised with a 50 bps rate cut , higher than consensus expectations leading Nifty ending the week with 1.7% WoW gains.

 Realty and Utilities were top outperformers, while Telecom & IT were the top underperformers during the last week. The broader market indices underperformed, with the midcap index posting marginal gains and the smallcap index ending slightly lower.

Trade setup for Monday

Nifty created history by scaling the all-time high zone above the 25800 levels with a strong bullish candle with bias.

“ On the daily charts we can observe that the Nifty is moving towards the upper end of the rising channel placed at 26000 which is also our short-term target. Support is placed in the zone of 25500 – 25450” said Jatin Gedia – Technical Research Analyst at Sharekhan.

BankNifty also breached above the previous peak zone. The index would have the next immediate target of 55100 levelswith 52000 zone as the important support zone, said Vaishali Parekh, Vice President - Technical Research - Prabhudas Lilladher

Global Market outlook

Although the major event of the Fed’s rate cut is behind, attention will remain on the US markets for further direction. 

The Dow Jones Industrial Average  surged to a new record high, approaching the upper boundary of its rising channel at 42,300. A decisive breakout above this level could potentially trigger fresh momentum and drive further gains. If the index fails to break through this resistance, some consolidation may occur in the near term, said Ajit Mishra-SVP, Research, Religare Broking Ltd

Also on the global front despite global economy going through a rate-cut cycle, the Bank of England stuck to a cautious tone keeping rates unchanged as has the Bank of Japan adopted a wait-and-watch approach after raising the interest rate in July.

Stocks to buy today

Market experts as Sumeet Bagadia, Executive Director at Choice Broking has recommended two stock picks for Monday, while another three picks are by Ganesh Dongre, Senior Manager of technical Research at Anand Rathi.

These include Marico Ltd, Ami Organics Ltd, HDFC Life Insurance Company Ltd, Reliance Industries Ltd, Larsen & Toubro Ltd

Sumeet Bagadia's stocks to buy today

1. Marico ltd- Sumeet Bagadia recommends buying Marico Ltd at ₹709 with a Stop loss at ₹687.73 and Target price of ₹751.54

Marico is currently trading near its all-time high at ₹709 and is forming a strong bullish candle, indicating potential for a breakout. The stock is on the verge of breaking out of a parallel channel on the daily chart, supported by a significant increase in trading volumes, which suggests a bullish outlook. If Marico manages to hold above 710, it could further move towards an upward target of 751.54, said Bagadia

2. Ami Organics Ltd- Sumeet Bagadia recommends buying Ami Organics Ltd in Cash at ₹1631.3 with a Stoploss at ₹1580 for a target price of ₹1725

Ami Organics Ltd 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, said Bagadia.

Ganesh Dongre, stocks to buy today

3. HDFC Life Insurance Company Ltd  Ganesh Dongre recommends buying HDFC Life Insurance Company Ltd at around ₹711 with Stoploss at ₹695 for a target price of ₹735.

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. 735. At present, the stock is maintaining a crucial support level at Rs.695 Given the current market price of Rs.711, 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. 735, said Dongre

4. Reliance Industries Ltd- Dongre recommends buying Reliance Industries Ltd at ₹2970 keping a stop Loss at ₹2900  for a target price of ₹3040. 

On the daily chart of this stock, support at ₹2900  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. 2900 is recommended. The target price for this strategy is Rs. 3040 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory said Dongre

5. Larsen & Toubro Ltd-  Dongre recommends buying Larsen & Toubro Ltd at rs 3795 keping stop loss at ₹3700 with a target price of ₹3950.

On the short-term chart, this stock is forming bullish engulfing pattern, which is inherently bullish. Currently priced at Rs. 3795, this formation signals a potential upward trend. To effectively manage risk, a stop loss at Rs. 3700 is recommended. .The target price for this strategy is Rs. 3950 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.