Stock market today: Trade setup for Nifty 50 to Q2 results 2024; five stocks to buy or sell on Tuesday — October 15

Stock Market Today: The Nifty 50 index ended with gains of 0.66% at 25,127.95 on Monday, as some decline in crude prices provided a relief even though uncertainties pertaining to the Iran-Israel war and FII outflows persist. BSE Sensex closed at 81,973.05, a gain of 0.73%.

The Bank Nifty at 51,816.90, ended higher by more than 1%, while realty and IT stocks also saw decent gains. Metals and energy sectors, however, remained subdued. The broader markets gained.

Trade setup for Tuesday

Shrikant Chouhan, Head of Equity Research, Kotak Securities, said that as long as the Nifty and Sensex are trading above 25,000 and 81,500, the pullback formation is likely to continue and could move up to 25,200-25,260 and 82,300-82,500, respectively. On the flip side, below 25,000 and 81,500, the sentiment could change, he added.

Bank Nifty could test levels of 52,500–52,800 in the short term. On the downside, 51,000 will provide strong support for Bank Nifty. Thus, as long as the index holds above 51,000, a "buy on dips" strategy should be pursued, advised Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.

Global market outlook

Asian shares gained ground on Monday, with stocks in China rising more than 2% on expectations of more stimulus. European stocks were mixed.

“Global markets are showing mixed signals as China’s disinflation and weaker economic data suggest a potential further slowdown in global economic growth, already affected by rising geopolitical tensions,” said Vinod Nair, Head of Research, Geojit Financial Services. Furthermore, the positive impact of the Chinese stimulus package seems to be diminishing.

The Indian market is demonstrating resilience, with subdued Q2 earnings expectations seemingly priced in and oil prices declining. The IT and financial sectors are attracting buying interest after recent corrections, said Nair.

Meanwhile, traders will react to the results of heavyweights like Reliance and HCL Technologies in early Tuesday trades.

Stocks to buy today

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

These include Torrent Power, NMDC, REC Ltd, Ambuja Cements and Titan Company.

Sumeet Bagadia's stocks to buy today

1.Torrent Power Ltd- Bagadia recommends buying Torrent Power at ₹1,940.25, keeping a stop loss at ₹1,872 with a target price of ₹2,076.

Torrent Power is currently trading at ₹1,940.25. The stock has recently rebounded from a key support zone and is on the verge of a breakout from its consolidation range, confirming upward momentum. This breakout is supported by a significant increase in trading volumes, signalling strong buying interest from investors. In the short term, the stock appears poised to target ₹2,076, Bagadi said.

2. NMDC Ltd- Bagadia recommends buying NMDC Ltd at ₹237.05, keeping a stop loss at ₹229 with a target price of ₹254.

NMDC is currently trading at ₹237.05 and has shown a strong rebound from the support zone of ₹220, forming a bullish candle on the daily chart. This indicates the formation of a bullish reversal pattern, with increasing trading volumes further confirming a positive outlook. If the stock sustains above the critical level of ₹240, it is likely to continue its upward momentum towards the target price of ₹254.

Ganesh Dongre's stocks to buy today

3. REC Ltd - Dongre recommends buying REC at ₹540, keeping a stoploss at ₹528 for a target price of ₹555.

The stock has substantial support at ₹528, marking a crucial juncture in its recent trading. Presently, at ₹540, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹528. The anticipated target for this trade is ₹555, representing the next significant resistance level. This strategy positions traders favourably to capitalise on the stock's anticipated rally in the weeks ahead.

4. Ambuja Cements Ltd - Dongre recommends buying Ambuja Cements at ₹589, keeping a stop loss at ₹575 for a target price of ₹615.

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 ₹615. At present, the stock is maintaining a crucial support level at ₹575. Given the current market price of ₹589, 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 ₹615.

5. Titan Company Ltd - Dongre recommends buying Titan Company at ₹3,500, keeping a stop loss at ₹3,400 for a target price of ₹3,650.

On the daily chart of this stock, a breakout at the ₹3,500 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 of ₹3,400 is recommended. The target price for this strategy is ₹3,650 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory, Dongre said.

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.