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

Stock market today: Following strong global market sentiments on the US Fed rate cut buzz, the Indian stock market ended higher on Wednesday. Strong buying was witnessed across segments; all three frontline indices touched a new lifetime high. The Nifty 50 index ended at 24,286 after a new high of 24,309. The BSE Sensex finished at 79,986 after climbing to a new peak of 80,074. The Bank Nifty index ended at 53,089 after hitting a new lifetime high of 53,256. Cash market volumes on the NSE rose 2.4% to ₹1.36 lakh crores. The broad market indices rose more than the Nifty even as the advance-decline ratio rose to 1.7:1.

Trade setup for Thursday

On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The overall trend of Nifty remains positive. Further consolidation or minor dips from here could be a buying opportunity per the bullish pattern of higher tops and bottoms. Nifty, as per the long-term chart, remains strong, and one may expect upside momentum to resume shortly after the consolidation movement. Immediate support is at 23980. The next upside resistance is around 24400."

On the outlook for the Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "Nifty Bank also reached a RECord high of 53,256.70 in the morning trade, driven by HDFC Bank, and then witnessed some profit booking on higher levels. Finally, Nifty Bank settled the day at a record high of 53,089 levels. From a technical standpoint, the index is consolidating in the band of 52,000-53,200. If the index sustains above 53,200, then the rally could extend towards 54,000-54,200 levels."

Pointing towards the reason for the uptrend on Dalal Street, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, “Markets cheered the dovish commentary from US Fed Chair Powell. This, along with healthy domestic macros and hope of a growth-focused budget, led to a positive up-move in the market. We expect this ongoing momentum to continue in the near term.”

US Fed meeting minutes

The members of the US Federal Reserve's rate-setting committee said last month that the bank's employment and inflation goals were moving into "better balance," with some calling for "patience" on interest rate cuts, according to minutes of the meeting published Wednesday.

Buy or sell stock ideas by experts

Regarding stocks 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 buying these five buy-or-sell stocks: Cochin Shipyard, Cholamandalam Investment and Finance, BHEL, REC, and RBL Bank.

Sumeet Bagadia's stocks to buy today

1] Cochin Shipyard: Buy at ₹2436.35, target ₹2555, stop loss ₹2345.

Cochin Shipyard share is currently trading at ₹2436.35. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹2333 and is rising quickly on the upside with substantial volume... There are expectations of further upward movement, potentially reaching ₹2555 levels. On the downside, considerable support is evident near ₹2345.

2] Cholamandalam Investment and Finance: Buy at ₹1435.30, target ₹1530, stop loss ₹1385.

Cholamandalam Investment and Finance share is trading at ₹1435.30, demonstrating technical strength. The stock has robust support at ₹1385 levels, slightly below its 20-day Exponential Moving Average (EMA). This support level fortifies the stock's resilience. CHOLAFIN is also trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, indicating a bullish trend and underlying strength.

Ganesh Dongre's buy or sell stocks

3] BHEL: Buy at ₹312, target ₹321, stop loss ₹305.

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 ₹321. The stock is currently maintaining a crucial support level at ₹305. Given the current market price of ₹312, 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 ₹321.

4] REC: Buy at ₹561, target ₹582, stop loss ₹550.

On the daily chart of this stock, a breakout at the ₹561 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 ₹550 is recommended. The target price for this strategy is ₹582 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] RBL Bank: Buy at ₹268, target ₹282, stop loss ₹260.

On the daily chart, the stock has shown a short-term reversal pattern. Specifically, a bullish engulfing pattern has formed, a strong indicator of potential upward movement. This technical pattern is considered bullish, suggesting that the stock may experience a price rise. Given this setup, traders might consider buying this stock, setting a stop loss at ₹260 to manage risk. The target price for this trade is ₹282, providing an opportunity for gains as the stock continues to demonstrate bullish behaviour.

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