Stock market today: Trade setup for Nifty 50 to India VIX, five stocks to buy or sell on Friday — Sept 6

Stock market today: After rising for the 14th day in a row, the Indian stock market ended lower for the second straight session on Thursday. The Nifty 50 index lost 53 points and closed at 25,145, the BSE Sensex shed 151 points and finished at 82,201, whereas the Bank Nifty index went up 72 points and ended at 51,473. Cash market volumes on the NSE were 4.2 per cent higher than the previous day. The broad market indices ended positively, even as the advance-decline ratio remained positive at 1.44:1.

Trade setup for Friday

Speaking on the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of the Nifty 50 index continues to be choppy with weak bias. Further weakness from here could find key lower support around 25000-24900 levels before showing a sustainable upside bounce again from the lows. Immediate resistance is placed at 25300."

On the outlook for Bank Nifty today, Dhupesh Dhameja, Technical Analyst at SAMCO Securities, said, "The Nifty Bank index opened with a 144-point gap-up but remained subdued, trading in a narrow range of 51,400 to 51,550. Despite a volatile start, the index closed nearly flat, down 0.14% at 51,473. On the 1-hour chart, the index continues to trade within an upward-sloping channel. Consistent support has been found at the 51,300 level, with the 50-period EMA on the hourly chart as a crucial "make or break" point. Strong resistance at 51,500 has created a tight range that may define the index's next move."

"India VIX slipped 1.88 per cent, settling at 14.20, down from 14.37. Despite the decline, VIX trading above last week's high suggests elevated volatility, though staying below 15 gives bulls some breathing room," the SAMCO Securities expert said.

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 these five shares: Alkem Laboratories, Aditya Vision, Sonata Software, MTAR Technologies, and Global Health.

Sumeet Bagadia's stock recommendations today

1] Alkem Lab: Buy at ₹6276.55, target ₹6600, stop loss ₹6050.

Alkem Lab's 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.

2] Aditya Vision: Buy at 552.05, target ₹585, stop loss ₹530.

Aditya Vision Limited's daily chart analysis reveals a notable shift in market dynamics, transitioning from minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects an up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.

Ganesh Dongre's shares to buy today

3] Sonata Software: Buy at ₹677, target ₹710, stop loss ₹663.

A notable bullish reversal pattern has emerged in the stock's recent short-term trend analysis. This technical pattern suggests a temporary retracement in the stock's price, potentially reaching around ₹710. The stock is currently maintaining a crucial support level at ₹660. A buying opportunity is emerging, given the current market price of ₹677. This suggests that investors consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹710.

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, signalling 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] Global Health: Buy at ₹1143, target ₹1220, 1110.

On the short-term chart, this stock is forming an inherently bullish rounding bottom pattern. Currently priced at ₹1143, this formation signals a potential upward trend. To effectively manage risk, a stop loss of ₹1110 is recommended. The target price for this strategy is ₹1220 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 given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.