Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Tuesday

Stock market today: Following strong global market sentiments on the US Fed rate cut buzz, the Indian stock market finished on a higher note on Monday. The Nifty 50 index regained the psychological 25,000 peak and ended at 25,010. The BSE Sensex surged 611 points and closed at 81,698, while the Bank Nifty index finished 214 points higher at 51,148. Cash market volumes on the NSE continued to fall, down 5.6% compared to the previous day. Broad market indices rose less than the Nifty even as the advance-decline ratio remained positive at 1.07:1.

Trade setup for Tuesday

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 positive. The market will soon zoom into new all-time highs after moving above the crucial hurdles around 24700 and 24950 levels. A decisive move above the 25K mark could soon open the upside target of 25,300 to 25. The market will soon zoom into new all-time highs after moving above the crucial hurdles around 24700 and 24950 levels400 levels. Immediate support is at 24,850."

On the outlook for the Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty opened on a positive note but encountered trend line resistance, leading to some profit booking. However, the index managed to settle the day positively at 51,148 levels. Technically, the Bank Nifty, on a daily scale, has formed a shooting star candle near the trend line resistance, suggesting potential resistance. Thus, 51,320 will act as resistance for the Bank Nifty in the short term. The sustainable move above 51,320 will push the index further higher to 52,000. Moreover, the index is above its 21-DEMA support, near the 50,830 level. If the index holds above 50,800, a "buy on dips" strategy is advisable."

Global markets update

"US Fed rate cut buzz is expected to fuel the global markets, including Dalal Street. On Wall Street, the Dow Jones ended at a record high on Monday after the buying buzz in the cyclical stocks amid tech rotation. The US dollar rates have also come down due to profit-booking in the US dollar and US bond market. Overall, the market trend is expected to remain positive," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

"We expect the ongoing momentum to continue towards new highs with broader market participation. This week, the market will focus on India & US GDP data, derivatives monthly expiry, and other global cues," said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.

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 five stocks.

Sumeet Bagadia's stock recommendations today

1] Fiem Industries: Buy at ₹1593.55, target ₹1677, stop loss ₹1535.

Film Industries' 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] Cipla: Buy at ₹1593.95, target ₹1690, stop loss ₹1555.

CIPLA is currently trading at ₹1593.95. The stock has formed a strong bullish candle on the daily chart, signifying a resurgence of strength in its price action.

A robust support level is situated at ₹1563, which conveniently aligns with the 20-day Exponential Moving Average (EMA). This confluence of support factors enhances the stock's stability and resilience.

Ganesh Dongre's shares to buy today

3] Deepak Nitrite: Buy at ₹2820, target ₹3000, stop loss ₹2750.

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 ₹3000. The stock is currently maintaining a crucial support level at ₹2750. Given the current market price of ₹2820, 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 ₹3000.

4] JK Lakshmi Cement: Buy at ₹788, target ₹820, stop loss ₹770.

On the daily chart of this stock, a breakout at the ₹788 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 ₹770 is recommended. The target price for this strategy is ₹820 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Sterlite Technologies: Buy at ₹138, target ₹145, stop loss ₹133.

This stock forms an inherently bullish rounding bottom pattern on the short-term chart. Currently priced at ₹138, this formation signals a potential upward trend. To effectively manage risk, a stop loss of ₹133 is recommended. The target price for this strategy is ₹145 in the upcoming weeks. This suggests a potential gain as the stock continues its upward trajectory, backed by the bullish technical signals.

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.