Stock market today: Trade setup for Nifty 50 to US Fed meeting outcome, five stocks to buy or sell on Thursday

Stock market today: Despite weak global market sentiments, the Indian stock market ended higher for the third day in a row on Wednesday. The Nifty 50 index finished 121 points higher at 24,978. The BSE Sensex scaled 285 points north and closed at 81,741, whereas the Bank Nifty index was 121 points higher at 51,620. In the broad market, the mid-cap index outshined frontline indices of the Indian stock market. However, the small-cap index ended 0.14 percent lower than the previous session.

Trade setup for Thursday

Speaking on the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty continues to be choppy, but the near-term uptrend status remains intact. The chart pattern signals more consolidation or minor dip in the next 1-2 sessions before bouncing back from the lows. Immediate support is at 24,600. However, a decisive move above 25,100 is expected to bring bulls back into action."

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty index opened on a positive tone, maintained bullish momentum despite turbulence, and ended the day on a positive note at 51,553. Technically, the index faces rejection from a falling trend line at 52,300 levels. Thus, 52,000-52,300 will serve as a resistance zone for the Bank Nifty, while 51,000 will be strong support."

US Fed meeting outcome in focus

On how the outcome of the US Fed meeting would impact the Indian stock market today, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, said, "The US Fed Chief Jerome Powell conveying a high probability of a rate cut in its September meeting should have a positive impact on the Indian market. We see a high probability of Nifty opening with a gap-up post-US FED meeting and continuing its march beyond 25K levels."

Expecting the bull trend on Dalal Street to continue, Ajit Mishra, SVP — Research at Religare Broking, said, "Markets may extend their gains and potentially surpass the 25,000 milestone on the Nifty index."

Stocks to buy today

Regarding intraday stocks for 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 buy or sell stocks: Glenmark Pharmaceuticals, ICICI Lombard, Kotak Mahindra Bank, Samvardhan Motherson, and Wipro.

Sumeet Bagadia's stock recommendations today

1] Glenmark Pharmaceuticals: Buy at ₹1468.75, target ₹1535, stop loss ₹1414.

Glenmark Pharmaceuticals' 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 in the daily frame, 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] ICICI Lombard: Buy at ₹2008, target ₹2100, stop loss ₹1935.

ICICIGI is exhibiting bullish solid momentum, trading at an all-time high of ₹2020. The recent breakout above the crucial resistance at ₹2000 levels is a significant technical development supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Ganesh Dongre's shares to buy today

3] Kotak Maahindra Bank: Buy at ₹1811, target ₹1865, stop loss ₹1780.

The stock found a substantial support level at ₹1780, marking a crucial juncture in its recent trading. At ₹1811, 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 ₹1780. The anticipated target for this trade is ₹1865, representing the next significant resistance level. This strategy positions traders favourably to capitalize on the stock's expected rally in the weeks ahead.

4] Samvardhan Motherson: Buy at ₹196, target ₹204, stop loss ₹190.

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 ₹204. The stock is currently maintaining a crucial support level at ₹190. Given the current market price of ₹196, a buying opportunity is emerging. This suggests that investors consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹204.

5] Wipro: Buy at ₹523, target ₹545, stop loss ₹508.

On the daily chart of this stock, a breakout at the ₹525 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 ₹508 is recommended. The target price for this strategy is ₹545 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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