Stock market today: Trade setup for Nifty 50, US-Iran war to gold, silver, crude oil rates; eight stocks to buy or sell

Stock market today: Amid no signs of de-escalation in the US-Iran war, crude oil prices skyrocketed 20% in the early morning session and touched a 52-week high of $111.24 per barrel. Meanwhile, safe-haven assets, gold and silver, today crashed by up to 5%, while Asian stock markets witnessed heavy selling amid rising inflation bets.

What does the Gift Nifty live chart and Asian markets signal?

By 7:40 AM on Monday, the Gift Nifty index was trading around 23,800, down over 500 points, or 2%, from its previous close.

Expecting a gap-down opening for the Indian stock market today, Ponmudi R, CEO of Enrich Money, said, “Gift Nifty is signalling a potential gap-down opening for the Nifty, tracking sharp declines across Asian markets."

Japan’s Nikkei 225 has fallen more than 6%, while South Korea’s Kospi is also down over 6%, reflecting a strong risk-off sentiment across the region. This broad weakness in Asian equities could weigh on Indian markets at the opening bell and keep volatility elevated in the early part of the session.”

Gold, silver rates today

With rising fears of inflation amid no signs of de-escalation in the US-Iran war, crude oil prices skyrocketed, dragging down gold and silver prices today. The COMEX gold rate today opened with a downside gap and touched an intraday low of $5,021.59, logging an intraday loss of nearly 2%. Likewise, the COMEX silver rate today opened with a downside gap and touched an intraday low of $79.698/oz, logging an intraday loss of nearly 5%.

On why gold and silver rates today are nosediving, Anuj Gupta, a SEBI-registered market expert, said, “Crude oil prices have skyrocketed over 20% in the early morning session on Monday and touched a new 521-week high. This has strengthened the US Dollar (USD) against the major global currencies. This is the reason for the dip in the safe-haven asset.”

US-Iran war news

According to a Bloomberg report, the son of Ayatollah Ali Khamenei will become Iran’s next supreme leader, Iran’s semi-official Fars news agency announced, taking over after his father was killed in an attack by the US and Israel.

Mojtaba Khamenei, 56, is the third person to lead the Islamic Republic and the first example of hereditary succession since the overthrow of the Pahlavi monarchy in the 1979 revolution.

Iran’s Assembly of Experts elected the country’s next supreme leader in a “decisive vote,” according to Fars. The vote took place hours before the result was made public.

On Sunday, Iran kept up attacks on its neighbours during the ninth day of the war in the Middle East, hitting a water plant in Bahrain.

Stock market today

Speaking on the outlook for the Nifty 50 and Sensex today, Amol Athawale, VP — Technical Research at Kotak Securities, said that the downside at 24,300/78,800 would act as an immediate support zone for traders. Below 24,300/78,800, the market could retest levels of 24,000/77,900. Further downside may also continue, which could drag the index to 23,900/77,500. On the flip side, 24,500/79,500 would be the immediate resistance zone for traders. If the market trades above 24,500/79,500, the pullback could continue to 24,800-24,850/80,400-80,600.

On the outlook of the Bank Nifty today, Amol Athawale said, “For Bank Nifty, the 200-day SMA (Simple Moving Average) or 57,500 would act as a strong support zone for traders. Below 57,500, the chances of hitting 56,800-56,500 would increase. On the other side, 58,300 would act as an immediate resistance level. Above this, the bounce-back could extend up to 59,000-59,300.”

FII-DII data

FIIs continue to remain net sellers on Friday by selling Indian shares worth around ₹6,030 crore in the cash segment, while the DIIs bought shares worth ₹6,971 crore. In index futures, FIIs sold out Indian shares worth ₹2,065 crore, whereas in the index option segment, FIIs bought shares worth ₹5,801 crore.

“We expect high volatility to persist, favouring domestically-insulated sectors like Capital Goods and Consumer Durables, while globally-exposed pockets may face continued headwinds until macro-uncertainty subsides,” said Vinit Bolinjkar, Head of Research at Ventura.

Stocks to buy today

Regarding stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, and Shiju Koothupalakkal, Senior Manager — Technical Research at Prabhudas Lilladher, recommended these five buy-or-sell stocks for intraday trading: Bharat Forge, Timken India, ONGC, NTPC, Hindustan Zinc, HBL Engineering, ABB India, and Quality Power.

Sumeet Bagadia's stock recommendations

1] Bharat Forge: Buy at ₹1924, Target ₹2060, Stop Loss ₹1855; and

2] Timken India: Buy at ₹3385, Target ₹3625, Stop Loss ₹3265.

Ganesh Dongre's buy or sell stocks

3] ONGC: Buy at ₹279, Target ₹293, Stop Loss ₹270;

4] NTPC: Buy at ₹380, Target ₹410, Stop Loss ₹370; and

5] Hindustan Zinc: Buy at ₹583, Target ₹630, Stop Loss ₹570.

Shiju Koothupalakkal's intraday stocks for today

6] HBL Engineering: Buy at ₹676, Target ₹730, Stop Loss ₹658;

7] ABB India: Buy at ₹6062, Target ₹6320, Stop Loss ₹5900; and

8] Quality Power: Buy at ₹833, Target ₹880, Stop Loss ₹812.

Disclaimer: This story is for educational purposes only. 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.