Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Monday — August 5

Stock market today: Following a sell-off in the global markets on renewed US recession fear, the Indian stock market snapped its five-day winning steak on Friday. The Nifty 50 index crashed 311 points and closed at 24,699. The BSE Sensex tanked 885 points and ended at 80,981, whereas the Bank Nifty index corrected 226 points and finished at 51,337. Cash market volumes on the NSE were down about 4 percent. The small-cap index fell less than the Nifty 50 index even as the advance-decline ratio was down to 0.59:1.

Trade setup for Monday

Speaking on the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty today is down, but the near-term uptrend status of the market is intact. There is a possibility of some more weakness in the coming sessions, down to 24,600 to 24,500, before showing any upside bounce from the lows. Immediate resistance for Nifty today is at 24,900."

On the outlook for the Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty index opened negatively but witnessed buying interest at lower levels. However, the index settled negatively at 51,350 due to strong selling pressure. Technically, the index is still consolidating in the band of around 51,000-52,300. Thus, waiting for a decisive breakout of this range is advised, which will determine the further direction for the Bank Nifty."

US recession news

"After the higher jobless claim data in the US, fear of the US recession has renewed, leading to a sharp correction in the US stock market. On Friday last week, Wall Street witnessed a bloodbath, and Asian markets are under pressure today. In early morning deals on Monday, the Japanese Nikkei crashed over 5 percent, whereas other Asian bourses are also under pressure. This is expected to dominate the Indian stock market as well. We are expecting some weakness in the Indian stock market during morning deals," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

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: Ajanta Pharma, Akzo Nobel India, Samvardhan Motherson, GMDC, and Finolex Cables.

Sumeet Bagadia's stock recommendations for today

1] Ajanta Pharma: Buy at ₹2828.50, target ₹2950, stop loss ₹2725.

Ajanta Pharma 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, 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] Akzo Nobel India: Buy at ₹3117.50, target ₹3260, stop loss ₹3005.

AKZOINDIA has recently exhibited a robust breakout from the critical resistance zone of ₹2955 to ₹3010 on the daily chart, consolidating the move with higher highs and higher lows. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

Ganesh Dongre's shares to buy today

3] Samvardhan Motherson: Buy at ₹194, target ₹200, stop loss ₹188.

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 ₹200. The stock is currently maintaining a crucial support level at ₹188. Given the current market price of ₹194, 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 ₹200 to ₹204.

4] GMDC: Buy at ₹395, target ₹410, stop loss ₹388.

On the daily chart of this stock, a breakout at the ₹395 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 ₹388 is recommended. The target price for this strategy is ₹410 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Finolex Cables: Buy at ₹1535, target ₹1585, stop loss ₹1500.

This stock is forming an inherently bullish rounding bottom pattern on the short-term chart. Currently priced at ₹1535, this formation signals a potential upward trend. To effectively manage risk, a stop loss at ₹1500 is recommended.

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.