Stock market today: Trade setup for Nifty 50 to US job data, five stocks to buy or sell on Thursday — Sept 5

Stock market today: After rising for fourteen straight sessions, the Indian stock market finally came under the profit-booking trigger on Wednesday. The Nifty 50 index went off 81 points and closed at the 25,198 mark, the BSE Sensex corrected 202 points and finished at 82,352, whereas the Bank Nifty index ended 288 points lower at 51,400. In the broad market, the small-cap stocks continue to attract bulls as the BSE Small-cap index finished 0.26 per cent higher in 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 near-term uptrend status remains intact for Nifty, and any consolidations and minor dips down to the 25K mark are expected to be a buying opportunity. One may expect Nifty to surge towards the new all-time highs around 25350-25400 soon."

On the outlook for the Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty began the day with a gap-down but later witnessed buying interest. Despite this, the index closed negatively at 51,400 levels. Technically, the daily chart shows the index forming a small green candle, indicating lower-level buying interest. On the downside, the 21-day Exponential Moving Average (DEMA) is near 51,090 levels. If the index remains above 51,090, a "buy on dips" strategy is recommended. On the upside, the Bank Nifty might attempt to test the 52,000 level, which corresponds to the target of the double bottom pattern."

US Job data

Data overnight showed that US job openings dropped to a 3-1/2-year low in July, suggesting the labour market was losing steam. However, the reduction alone is probably insufficient to warrant a half-percentage-point rate cut by the Federal Reserve this month.

Global markets today

The US dollar rates came under pressure after the weak US Job report on Wednesday, fueling the Japanese Yen during the early morning session on Thursday. Treasuries across the Asian markets witnessed strong buying in the early morning session. Asian stock futures were mixed. The future contracts for Japan fell more than 1 per cent, while those for Australia and Hong Kong changed slightly. The S&P 500 and Nasdaq 100 ended Wednesday 0.2 per cent lower as Nvidia's share price saw its worst two-day plunge since October 2022 amid a report about the US Department of Justice sending out subpoenas as part of an antitrust probe.

In Asia, traders will closely watch Nippon Steel's shares. After US President Joe Bi, according to people familiar with the matter, the den was said to block the Japanese steelmaker's $14.1 billion takeover of United States Steel Cor. Shares of US Steel closed 17% lower in New York, the most significant decline since April 2017.

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 stocks: Syngene International, United Spirits, JSW Steel, MTAR Technologies, and State Bank of India (SBI).

Sumeet Bagadia's stock recommendations today

1] Syngene International: Buy at ₹879.65, target ₹925, stop loss ₹850.

Syngene share price is in a strong uptrend, with a trading price of ₹879.65. The stock has been consistently moving upwards, forming a bullish continuation pattern, exhibiting moves with higher highs and higher lows. The latest candlestick formation shows a bullish trend, signalling further upside potential with a target of ₹925 and support at ₹830.

2] United Spirits: Buy at ₹1499.35, target ₹1585, stop loss ₹1449.

United Spirits share is trading at ₹1499.35 and has touched an all-time high today at ₹1507. The stock shows bullish, solid momentum with a continuous uptrend on the daily chart. If the stock continues to rise, the target could be around ₹1585, with a support level of ₹1435.

Ganesh Dongre's shares to buy today

3] JSW Steel: Buy at ₹932, target ₹955, stop loss ₹920.

The stock found a substantial support level at ₹920, marking a crucial juncture in its recent trading. At ₹932, the stock has demonstrated a definitive price-action reversal, 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 ₹920. The anticipated target for this trade is ₹955, representing the next significant resistance level. This strategy positions traders favourably to capitalize on the stock's expected rally in the weeks ahead.

4] MTAR Technologies: Buy at ₹1810, target ₹1880, stop loss ₹1770.

A notable bullish reversal pattern has emerged in the stock's recent short-term trend analysis. This technical pattern suggests a temporary retracement of the stock price, potentially reaching around ₹1880. The stock is currently maintaining a crucial support level at ₹1770. Given the current market price of ₹1810, 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 ₹1880.

5] SBI: Buy at ₹816, target ₹845, stop loss ₹800.

On the daily chart of this stock, a breakout at the Rs.816 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 ₹800 is recommended. The target price for this strategy is ₹845 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

(With inputs from Reuters)

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.