Stock market today: Trade setup for Nifty50 today; five stocks to buy or sell on Wednesday - August 7

The Indian stock market indices extended their losses into the third consecutive session on Tuesday amid concerns over an economic slowdown in the US, geopolitical tensions in the Middle East, and rich valuations of domestic equities. The Sensex fell 166.33 points, or 0.21%, to close at 78,593.07, while the Nifty 50 settled 63.05 points, or 0.26%, lower at 23,992.55.

However, US stocks rebounded to end sharply higher on Tuesday as recent comments by Federal Reserve officials eased US recession worries. The Dow Jones Industrial Average gained 294.39 points, or 0.76%, to 38,997.66, while the S&P 500 rallied 53.70 points, or 1.04%, to close at 5,240.03. The Nasdaq Composite ended 166.77 points, or 1.03%, higher at 16,366.85.

Trade Setup for Wednesday

Vaishali Parekh, Vice President - Technical Research, PL Capital - Prabhudas Lilladher

“Nifty after the pullback witnessed in the morning session scaled 24380 zone but failed to sustain with overall bias and sentiment weakening and gradually erased the gains as the day progressed to end below the 24000 zone. The index would have the next crucial support of 23700 level of the long term trendline zone which needs to be sustained to maintain the overall trend. BankNifty scaled 50600 zone in the morning session but witnessing tough resistance, gradually slipped down to end below the 49800 zone with bias turning weak and is precariously placed with next important level of the 100 period MA at 49500 levels to be watched for. The support for the day is seen at 78000/23800 levels while the resistance would be seen at 79200/24200 levels. BankNifty would have the daily range of 49300-50200 levels.”

Stocks to buy today

Regarding intraday stocks for today, stock market experts Sumeet Bagadia of Choice Broking and Ganesh Dongre of Anand Rathi recommended these five buy or sell stocks: Hindustan Unilever, Natco Pharma, Godrej Properties, Reliance Industries, and Havells India.

Stock recommendations today by Sumeet Bagadia, Executive Director at Choice Broking

Hindustan Unilever: Buy in Cash at ₹2,757.6 | Stop Loss: ₹2,665 | Target: ₹2,940

HINDUNILVR presents a promising buy opportunity at its current price of 2757.6 in the cash market. The stock has been demonstrating a clear uptrend, characterized by a flag and pole pattern on the daily chart. Recently, it has broken out from this pattern with notable trading volumes, indicating strong momentum in the upward movement.

The Relative Strength Index (RSI) is currently at 67.46 and is trending upward, suggesting increasing buying pressure and a continued bullish trend. Additionally, HINDUNILVR has recently bounced off its short-term (20-day) Exponential Moving Average (EMA), further reinforcing the positive outlook.

Based on these technical indicators, we recommend taking a long position in HINDUNILVR at 2757.6. Set a stop loss at 2665 to manage risk, and aim for a target price of 2940, aligning with the current favorable market sentiment.

Natco Pharma: Buy in Cash at ₹1351.65 | Stop Loss at ₹1,305 | Target: ₹1,450

NATCOPHARM has recently experienced a pullback from higher levels but is finding support near the 1290 mark, which aligns closely with its short-term (20-day) Exponential Moving Average (EMA). This indicates strength in the current trend. If the stock maintains its position above 1370, it is expected to advance towards a target price of 1450.

The Relative Strength Index (RSI) is currently at 64.76 and is trending upwards, signaling increasing buying momentum. Additionally, NATCOPHARM is trading above its short-term (20-day) EMA, medium-term (50-day) EMA and long-term (200-day) EMA, reflecting a strong bullish outlook.

In summary, with the stock in an uptrend, holding above key moving averages, and the RSI indicating strength, we recommend buying NATCOPHARM at 1351.65. Set a stop loss at 1305 to manage risk, and aim for a target price of 1450 to capitalize on potential gains.

Stocks to buy today by Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi

Godrej Properties: BUY at ₹2,920 | Stop Loss: ₹2,860 | Target: ₹3,020

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests the possibility of a temporary retracement in the stock's price, potentially reaching around Rs. 3020. At present, the stock is maintaining a crucial support level at Rs.2860. Given the current market price of Rs.2920, a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 3020

Reliance Industries: BUY at ₹2,910 | Stop Loss: ₹2,850 | Target: ₹2,980

We have seen a major support in this stock around Rs.2850 So, at the current juncture, the stock has again seen a reversal price action formation at the Rs.2910 price level, which may continue its rally till its next resistance level of Rs.2980 so traders can buy and hold this stock with a stop loss of Rs.2850 for the target price of Rs.2980 in the upcoming weeks.

Havells India: BUY at ₹1,785 | Stop Loss: ₹1,755 | Target: ₹1,825

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests the possibility of a temporary retracement in the stock's price, potentially reaching around Rs. 1825. At present, the stock is maintaining a crucial support level at Rs.1755. Given the current market price of Rs.1785, a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 1825.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.