Stock market today: Trade setup for Nifty 50 to global markets outlook, five stocks to buy or sell on Wednesday —Sept 25

Stock Market Today: Indian benchmark equity indices hit new hitoricals milestones on Tuesday, though ended on a lackluster note after a volatile session. The Nifty 50 index ended with just 0.01% gains at 25,940.40 not before scaling 26,000 level while the S&P BSE Sensex ended at 84,914.04, down 0.02%, after hitting historic high of 85,000.

Sector-wise, metals and Energy stocks saw strong gains led by China stimulus as IT posted decent gains. FMCG and financials saw profit booking while the broader indices ended the rangebound session following a mixed trend, leading to a flat market breadth. Nifty Bank Index ended 0.25% lower at 53,968.60.

Trade setup for Wednesday

On the daily charts after the sharp runup the Nifty has entered a phase of consolidation and the hourly momentum indicator has triggered a negative crossover, which points towards loss of momentum on the upside, said Jatin Gedia – Technical Research Analyst at Sharekhan. 

Gedia expects some consolidation in the near term. On the downside, support is placed 25,800 – 25,750 while immediate hurdle zone is at 26,100 – 26,150.

Bank Nifty has taken a breather near 54,200 zone after the decent rally witnessed from the 50 EMA zone of 51,000 levels and with bias maintained positive, said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher. The index would have the next targets of 55,100 and 56,600 levels in the coming days provided the support zone of 52,300 level is sustained, said Parekh.

Global Market outlook

Asian stocks rose on Tuesday to their highest in more than two and half years, heartened by broad stimulus measures from China while expectations for more U.S. rate cuts kept risk sentiment up. European shares traded on a positive note Tuesday, as China's sweeping stimulus measures boosted stocks of luxury companies and miners. 

Nifty formed a spinning top like pattern on September 24 after remaining in a 125 points range. Nifty could now face resistance from 26,250 while 25,611-25,791 band could offer support, said Deepak Jasani, Head of Retail Research, HDFC Securities.

Going ahead, key events like the US GDP and Core PCE data, Fed Chair Powell's speech and monthly derivatives expiry are likely to keep the markets busy.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking has recommended two stock picks for Wednesday. Also Ganesh Dongre, Senior Manager of technical Research at Anand Rathi also has given another three stock picks for today.

These include Lloyds Metals and Energy , Bharat Heavy Electricals, Dr. Lal PathLabs, Tata Steel and Gujarat State Fertilizers & Chemicals.

Sumeet Bagadia's stocks to buy today

1. Lloyds Metals and Energy Ltd- Bagadia recommends buying Lloyds Metals and Energy share at ₹877.25 keeping stop loss at ₹845 for a target price of ₹925

Lloyds Metals and Energy is exhibiting strong bullish momentum, currently trading at an all-time high of 889.95 levels. The recent breakout above the crucial resistance at 850 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, Lloyds Metals and Energy as per Bagadia is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 73 level

2. Bharat Heavy Electricals - Bagadia recommends buying BHEL shares at ₹282.25 keeping stop loss at ₹273.5 for a target of ₹300

BHEL stock is currently trading at ₹282.25 and has recently given a breakout from a parallel channel, showing signs of a potential reversal from its support level at ₹270. The bullish sentiment is further reinforced by a noticeable increase in trading volumes. If BHEL sustains above the key resistance level of ₹285, it is expected to target ₹300 in the short term, said Bagadia.

Ganesh Dongre, stocks to buy today

3. Dr. Lal PathLabs Ltd- Dongre recommends buying Dr. Lal PathLabs at ₹3,350 with a stop loss at ₹3,280 for a target price of ₹3,450.

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 ₹3,450. At present, the stock is maintaining a crucial support level at ₹3,280 Given the current market price of ₹3,350, 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 ₹3,450, said Dongre

4. Tata Steel Ltd - Dongre recommends buying Tata Stel at ₹160 with Stop Loss at ₹154 for a target of ₹170

On the daily chart of this stock, support at ₹154 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 ₹154 is recommended. The target price for this strategy is ₹170 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5. Gujarat State Fertilizers & Chemicals Ltd- Dongre recommends buying Gujarat State Fertilizers & Chemicals Ltd at ₹221 keeping stop loss as ₹216 for a target price of ₹233.

On the short-term chart, this stock is forming bullish engulfing pattern, which is inherently bullish. Currently priced at ₹221, this formation signals a potential upward trend. To effectively manage risk, a stop loss at ₹216 is recommended. .The target price for this strategy is ₹233 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.