Stock market today: Trade setup for Nifty 50 to Q2 results; five stocks to buy on Wednesday — October 16

Stock Market Today: The benchmark Nifty50 index continuing its correction phase ended at 25,057.35, 0.28% lower on Tuesday. S&P BSE Sensex also ended a volatile trading session at 81,820.12 down 0.19%. Bank Nifty at 51,906.00 ended 0.17% higher. Realty was major gainers supported by FMCG though auto and metals were among losers. The broader markets however outperformed with mid and small caps gaining.

Trade setup for Wednesday

Nifty slipped into weakness on October 15 and formed a reasonable bear candle, said Deepak Jasani, Head of Retail Research at HDFC Securities Nifty remains choppy even as the 25200 level proves difficult to breach on the upside. Nifty could stay in the 25234-24832 band for the near term, added Jasani.

Bank Nifty with the help of ICICI bank managed to close with gains and above the 40-day average (51,872). Positive momentum is likely to continue towards 52,500 which coincides with the 20-day average. Support base shifts higher towards 51,400 – 51,500, said Jatin Gedia – Technical Research Analyst at Sharekhan

Global market outlook

Asian shares were mixed on Tuesday and Chinese stocks tumbled. European shares were little changed on Tuesday as oil prices dropped on a report that Israel will refrain from striking Iranian energy targets.

Broking stocks were in momentum after Angel One reported a strong set of numbers though weak results by index heavyweights by Reliance dented the sentiment. Overall, we expect markets to consolidate in the near term in the absence of any major triggers. Although Q2 results would continue to provide stock-specific action, said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services

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 Ramkrishna  Forgings Ltd,  BF Utilities Ltd , Grasim Industries Ltd,  LIC Housing Finance Ltd and ITC Ltd. 

Sumeet Bagadia's stocks to buy today

1. Ramkrishna Forgings Ltd- Bagadia recommends buying Ramkrishna Forgings at ₹1047.2 keeping Stoploss at ₹1015  for target price of ₹1125

Ramkrishna Forgings is currently trading at ₹1,047.2 and is exhibiting a clear uptrend, with consistent higher highs and higher lows. The stock has recently broken out with strong momentum, signaling a bullish breakout from its recent price action. A significant reversal from support levels further supports this bullish sentiment. If the stock closes above the key resistance level of ₹1,060, it may rally toward a short-term target of ₹1,125. 

2. BF Utilities Ltd - Bagadi recommends buying BF Utilities at ₹1112.1 keeping Stoploss at ₹1075 for a target price of ₹1177

BF Utilities  is exhibiting strong bullish momentum, currently trading at an all-time high of 1118.7 levels. The recent breakout above the crucial resistance at 1065 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.

Ganesh Dongre's stocks to buy today

3. Grasim Industries Ltd- Dongre recommends buying Grasim at ₹2735  keeping stoploss at ₹ 2650  for a target price of ₹2850.

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 ₹2850. At present, the stock is maintaining a crucial support level at Rs.2650. Given the current market price of Rs.2735, 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 Rs.2850.

4. LIC Housing Finance - Dongre recommends buying LIC Housing Finance at ₹626 with Stop Loss at ₹605 with target price at ₹660

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 Rs.660. At present, the stock is maintaining a crucial support level at Rs.605. Given the current market price of Rs., 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 Rs.660

5. ITC Ltd- Dongre recommends buying ITC at ₹498 keeping Stoploss at ₹490 for a target price of ₹513.

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 Rs. 513. At present, the stock is maintaining a crucial support level at Rs.490. Given the current market price of Rs.498, 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 Rs. 513.

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.

td  Dongre