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Business News/ Markets / Stock Markets/  Stock market today: Trade setup for Nifty 50 to India VIX, four stocks to buy or sell on Wednesday — May 8
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Stock market today: Trade setup for Nifty 50 to India VIX, four stocks to buy or sell on Wednesday — May 8

Stocks to buy today: Experts have recommended four buy or sell stocks for today — Supreme Industries, Siemens, Westlife Foodworld, and CG Power & Industrial Solutions

Stock market today: Immediate resistance for the Nifty 50 index is placed at 22,400 levels, say experts.Premium
Stock market today: Immediate resistance for the Nifty 50 index is placed at 22,400 levels, say experts.

Stock market today: After showing a sideways movement (a term used to describe a market that is neither trending up nor down) with a weak bias (a slight inclination towards a particular direction) on Monday, the Indian stock market slipped into the weakness zone (a period of declining prices) with range-bound action (a situation where the price of a security trades in a narrow band) and ended lower on Tuesday. The Nifty 50 index dipped 140 points and closed at the 22,302 mark, the BSE Sensex corrected 383 points and closed at the 73,511 level, while the Bank Nifty index lost 609 points and finished at the 48,285 mark. 

India VIX index ended 2.45 percent higher at 17.01 after hitting a new 52-week peak of 17.64 mark, logging over 35 percent rise on one week. Declining shares outnumbered the advancing shares as the advance-decline ratio stood at 0.40 on BSE, the lowest since 15th April 2024. All the sectoral Indices are closed in red (a term used to indicate a negative performance) except Nifty FMCG and Nifty IT. Nifty Reality, Metal, and PSU Banks fell the most among them.

Also Read: Day trading stocks to buy: Anand Rathi expert recommends three shares to buy

Trade setup for Wednesday

On the outlook for the Nifty 50 today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The lower tops and bottoms on the daily chart are intact, and the present weakness could be in line with the new higher bottom formation of the pattern. The higher bottom reversal must be confirmed with an upside bounce from the lows. Immediate resistance for the Nifty 50 index is placed at 22,400 levels; the next lower levels will be watched around 22,100 to 22,000."

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 8

On the outlook for the Bank Nifty today, Rupak De, Senior Technical Analyst at LKP Securities, said, "On the hourly chart, a head and shoulders pattern has emerged, with the index already breaking below the neckline. More weakness is anticipated in the coming days, potentially pushing the index towards 47700. Resistance is observed at 48800 on the higher end."

On the outlook for the Indian stock market today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "Domestic benchmark indices opened higher on Tuesday, aided by favourable global clues. However, after some initial jitters, the market saw massive profit bookings, with the Volatility Index (India VIX) jumping by about 6%. Later in the day, volatility decreased, and the index closed at 22,302. Technically, the index created a bearish engulfing candle last week, indicating weakness. The index settled below the low of the bearish engulfing candle and the 34-Day Exponential Moving Average (DEMA) support, suggesting further pessimism."

Buy or sell stock ideas by experts

Stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Virat Jagad, Technical Analyst at Bonanza Portfolio, have shared their insights for Wednesday's trading. Bagadia recommends buying Supreme Industries and Siemens, while Jagad suggests considering Westlife Foodworld and CG Power & Industrial Solutions.

Sumeet Bagadia's stocks to buy today

1] Supreme Industries: This stock is a potential winner. Buy at 5247.35, with a target of 5555, and a stop loss at 5050. This could be a profitable move for you.

Supreme Industries share has recently experienced a significant breakthrough above the crucial resistance zone, ranging from 5000 to 5150 on the daily chart. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows. A noticeable surge in trading volume further validates the strong bullish sentiment.

2] Siemens: Buy at 6094.60, target 6444, stop loss 5900.

Siemens share price 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.

Virat Jagad's buy or sell stocks

3] Westlife Foodworld: Buy at 880 to 885, target 940, stop loss 860.

Westlife Foodworld Ltd: Our analysts have conducted a thorough analysis of this stock. They have identified a potential uptrend on its daily chart, resembling a rounding bottom pattern. This indicates a shift from a downtrend to a possible uptrend. A bullish candlestick formation further confirms positive market sentiment. The stock is currently trading above both the Fast (21) and Slow (50) Exponential Moving Averages (EMAs), suggesting strong upward momentum. The trading volume has increased on buying days, indicating heightened interest from buyers. Furthermore, the Relative Strength Index (RSI) is trending higher, signalling a bullish market trend. All these factors point towards a positive outlook for Westlife Foodworld Ltd.

4] CG Power & Industrial Solutions: Buy at 570 to 572, target 610, stop loss 550.

CG Power & Industrial Solutions Ltd has demonstrated a consistent northward trajectory, characterized by a pattern of higher highs and higher lows on the daily chart. Volume increase during the buying day indicates buyers are active in the stock. Furthermore, the 14-day Relative Strength Index (RSI) is noteworthy for surpassing the 70-level threshold, underscoring the prevailing bullish momentum. The price has closed near the high, forming a bullish candle. Prices are trading above the Fast (21) EMA and Slow (50) EMA, indicating a positive trend. On the Directional front, DI+ is trading above DI- indicating a positive trend, and ADX trading above DI indicates strength in the move. These technical indicators collectively support the notion of a bullish trajectory for CG Power & Industrial Solutions Ltd.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

 

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 08 May 2024, 07:41 AM IST
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