Stock market today: Trade setup for Nifty 50 to Israel-Iran war; five stocks to buy or sell on Friday — Oct 4

Stock Market Today: Amidst rising anxiety pertaining to the Iran- Israel war, concerns on FII flows to China and SEBI regulations for the F&O segment, the benchmark Nifty 50 index on Thursday posted its highest single-day fall since 5 August 2024 as the index tumbled 2.12% or 546 points to 25,250. The S&P BSE Sensex settled at 82,497.10, lower by 1769.19 points or 2.10%. 

All the sectoral indices ended in the red, with Nifty Realty, Auto, Financial Services, and Oil & Gas emerging as the biggest laggards. Bank Nifty settled at  51,845.20, down over 2%.

Trade setup for Friday

With the Nifty breaching multiple supports—such as the 20-day exponential moving average (DEMA) around the 25,580 level and trendline support near 25,350—the market could face further downside, said Ajit Mishra – SVP, Research, Religare Broking. We are now looking at the 25,000-25,150 zone as the next support, while any rebound is likely to be capped in the 25,450-25,600 range, added Mishra. 

Bank Nifty which was leading the up move during the latter half of September is now correcting and leading the fall, said Jatin Gedia – Technical Research Analyst at Sharekhan. He expects the fall to continue towards 49,700, the low it touched in August. On the upside, 52,600 – 52,700 is a crucial resistance.

Global Market Amidst Iran-Israel War

Asian stocks retreated on Friday as oil prices surged, set to close the week with highest gains in almost a year. Australian and Japanese stock markets slipped while European futures were flat.

Investors are advised to remain cautious as they await upcoming Q2 earnings and monitor the policy decisions of the RBI's policy, said Vikram Kasat, Head - Advisory, Prabhudas Lilladher. Investors should keep a watch on global developments and crude oil price trends as they are the key factors shaping market dynamics.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking recommended two stock picks for Friday. Also, Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi suggested three stock ideas for today.

These include Pitti Engineering, Sarda Energy & Minerals, InterGlobe Aviation (Indigo), Maharashtra Seamless, and Tata Communications.

Sumeet Bagadia's stocks to buy today

1. Pitti Engineering - Bagadia Recommends buying Pitti Engineering at ₹1,366.85, with a stop loss of ₹1,325 and a target price of ₹1,460.

Pitti Engineering is currently trading at 1,366.85 levels, showcasing a notable uptrend from the support levels around 1,265, near its 50-day Exponential Moving Average (EMA). The stock's positive momentum is further confirmed by its positioning above the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, reinforcing its technical resilience.

2. Sarda Energy & Minerals - Bagadia recommends buying Sarda Energy & Minerals at ₹491.95, with a stop loss of ₹472 and a target price of ₹520.

Sarda Energy & Mineral'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.

Ganesh Dongre's stocks to buy today

3.InterGlobe Aviation - Dongre advises buying InterGlobe Aviation (Indigo) at ₹4,716, with a stop loss of ₹4650 and a target price of ₹4950.

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 to ₹4,950. At present, the stock is maintaining a crucial support level at ₹4,650 Given the current market price of ₹4,716, 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 ₹4,950.

4. Maharashtra Seamless - Dongre recommends buying Maharashtra Seamless at ₹633, with a stop loss of ₹620 and a target price of ₹655.

On the daily chart of this stock, support at ₹620 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 of ₹620 is recommended. The target price for this strategy is ₹655 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5. Tata Communications - Dongre Recommends buying Tata Communications at ₹2,145, with a stop loss of ₹2,100 and a target price of ₹2,300.

On the short-term chart, this stock is forming a bullish engulfing pattern, which is inherently bullish. Currently priced at ₹2,145, this formation signals a potential upward trend. To effectively manage risk, a stop loss at ₹2,100 is recommended. The target price for this strategy is ₹2,300 in the upcoming weeks. This suggests potential gains as the stock continues its upward trajectory, backed by the bullish technical signals.

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