Stock market today: Trade setup for Nifty 50 to US Fed minutes, give stocks to buy or sell on Tuesday — August 20

Stock market today: After the stellar performance on Friday, the Indian stock market took a breather on Monday with range-bound action. The Nifty 50 index added 31 points and closed at 24,572; the BSE Sensex ended marginally lower at 80,424, whereas the Bank Nifty index corrected 148 points and finished at 50,368. However, the broad market outshines the frontline indices. The Small-cap index shot up 1.33 per cent, while the Mid-cap index surged 0.53 per cent.

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. Having placed at the key overhead resistance around 24700, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions before showing another round of upside breakout. Immediate support for Nifty today is placed at 24,400."

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty also opened with a gap up but failed to sustain higher levels, leading to profit booking. Consequently, the index ended the day on a negative note at 50,368. Technically, the Bank Nifty has formed a red candle on the daily chart, indicating weakness. The index could not cross the barrier of the 21-DEMA, located near 50,770, and the previous week's high was near 50,830 levels. A sustained move above 50,830 could propel the index towards the 51,200-51,500 range. Until then, the index is likely to consolidate within the band of 49,650-50,830."`

US Fed minutes

"As Meaket is waiting for the outcome of the Jackson Hole Symposium, US Fed minutes coming ahead of Jerome Powell's speech is also an important trigger that the market is looking at. So, I expect the range-bound movement to continue with positive bias maintained," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

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 intraday stocks for today.

Sumeet Bagadia's stock recommendations today

1] Wipro: Buy at ₹519.75, target ₹560, stop loss ₹500.

The stock is displaying signs of resilience and potential upward momentum. Its ability to rebound from the robust support range of ₹480 to ₹485 indicates considerable buying interest within this price band. After a bounce back from the mentioned support levels, we have seen a decisive breakout above ₹500, which will act as solid support.

2] Fiem Industries: Buy at ₹1418.75, target ₹1485, stop loss ₹1365.

Fiem Industries' share is currently trading at ₹1418.75. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹1400 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹1485 levels. On the downside, considerable support is evident at nearly ₹1365.

Ganesh Dongre's shares to buy today

3] Kansai Nerolac Paints: Buy at ₹295, target ₹305, stop loss ₹290.

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 Rs. 305. The stock is currently maintaining a crucial support level at ₹290. Given the current market price of ₹295, 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 ₹305.

4] Godrej Properties: Buy at ₹2930, target ₹3050, stop loss ₹2860.

On the daily chart of this stock, a breakout at the ₹2930 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 at ₹2860 is recommended. The target price for this strategy is ₹3050 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Coal India: Buy at ₹522, target ₹535, stop loss ₹512.

This stock is forming an inherently bullish rounding bottom pattern on the short-term chart. Currently priced at ₹522, this formation signals a potential upward trend. To effectively manage risk, a stop loss of ₹512 is recommended.

The target price for this strategy is ₹535 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 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.