Stock market today: Trade setup for Nifty 50 to India-Pakistan ceasefire; five stocks to buy or sell on Monday

Stock Market Today: Amid rising concerns led by India and Pakistan conflict, during the week ending 9 May 2024, the benchmark Nifty-50 index ended around 1.4% lower . Bank Nifty ended 2.6% lower at 53,595.25, while Realty, pharma, utilities were also key loser  though Autos and Industrials were among key outperformers. In the broader markets the mid and small-caps also corrected around 0.9%- 2.17%.

Trade Setup for Monday

As long as the Nifty remains below the 24,150  level, weak sentiment is likely to continue and Nifty could retest the 23,800 followed by 23,600. On the upside, a move above 24,150 could signal a pullback rally to 24,350–24,450, as per Amol Athawale, VP- Technical Research, Kotak Securities.

For Bank Nifty, the 20-day SMA or 54,000 will act as a trend decider for short-term traders, added Athawale.

Global Markets and Q4 Results

Geopolitical developments, particularly the ongoing tensions with Pakistan, will continue to remain in focus. On the macroeconomic front, investors will closely monitor the release of key data points including the Consumer Price Index (CPI), Wholesale Price Index (WPI), and trade figures for exports and imports, said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Additionally, the corporate earnings season will gather pace, with several major companies—such as PVR INOX, Tata Steel, Bharti Airtel, Cipla, GAIL, Hero MotoCorp, Tata Motors, Lupin, Godrej Industries, and BHEL—scheduled to announce their quarterly results.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stock picks for today. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, suggested three stocks.

These Include Redington Ltd, LT Foods Ltd,  JSW Steel, Chambal Fertilisers & Chemicals Ltd and Sun Pharmaceutical Industries Ltd. 

Sumeet Bagadia's stock picks

1] Redington: Bagadia recommends buying Redington at ₹259.35 keeping Stoploss at ₹248 for a target price of ₹285

REDINGTON is currently trading at ₹259.35 and demonstrating a strong bullish trend. The stock has recently formed a bullish engulfing pattern on the daily chart and is nearing a critical resistance level at ₹265. A breakout above this resistance would likely confirm the continuation of the upward momentum. This bullish setup is supported by a surge in trading volumes, indicating strong buying interest from market participants

2] LT Foods: Bagadia recommends buying LT Foods at around ₹359.55 keeping Stoploss at ₹346 for a target price of ₹385

LT Foods is currently trading at ₹359.55, having recently rebounded from a key support zone. The stock is on the verge of breaking out from a falling trendline on the daily timeframe, suggesting the potential formation of a bullish reversal pattern. This outlook is supported by rising trading volumes, indicating strong buying interest. In the short term, the stock appears well-positioned to move towards the ₹385 level.

Ganesh Dongre's stocks to buy today

3] JSW Steel- Dongre recommends buying JSW Steel at around ₹957 keeping Stoploss at ₹945 for a target price of ₹972.

In the latest short-term technical analysis, JSWSTEEL has shown a strong and consistent bullish trend, indicating the potential for an extended upward move. The stock is currently trading at ₹ 957 and holding above a key support level at ₹ 945. This support zone serves as a critical point for risk management. Given the bullish momentum, traders are advised to consider a buying opportunity with a stop-loss placed strategically at ₹ 945 to manage downside risk. The target for this trade is set at ₹972, suggesting a favorable risk-to-reward ratio and a continuation of the prevailing upward trend.

4] Chambal Fertilisers & Chemicals Ltd- Dongre recommends buying Chambal Fertilisers at around ₹695 keeping Stoploss at ₹675 for a target price of ₹720

Chambal Fertilisers has exhibited a notable bullish reversal pattern, offering another promising opportunity for short-term traders. The stock is currently priced at ₹ 695 and maintaining a strong support at ₹ 675. The technical setup indicates the potential for a price retracement towards the ₹ 720 level. With the stock reversing from a support base and showing signs of renewed strength, entering at the current market price with a stop-loss at ₹ 675 offers a prudent approach to capturing the anticipated upside.

5] Sun Pharmaceutical Industries Ltd - Dongre recommends buying Sun Pharma at ₹1745 keeping Stoploss at ₹1720 for a target price of ₹1790.

SUNPHARMA , the stock is currently trading at ₹ 1745 and appears to be in an oversold zone for short term. A bullish reversal pattern has emerged on the daily chart, indicating a potential recovery move. The critical support level lies at ₹ 1720, which also acts as a key stop-loss point for this trade. With bullish cues signaling a possible retracement towards the ₹ 1790 target, this setup provides a favorable entry opportunity for traders looking to capitalize on a technical rebound.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.