Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Thursday — Dec 12

Stock Market Today: Domestic equity benchmarks Nifty 50 and Sensex snapped their three-day losing streak and settled with mild gains in the previous session driven by selected heavyweights such as Infosys and Bajaj Finance. D-Street awaits India’s retail inflation data for November 2024 after market closing hours later today. The November US inflation was slightly higher than in October, driven by food prices and pricier hotel rates.

The 30-share BSE Sensex rose by 16.09 points or 0.02 per cent to close at 81,526.14 on Wednesday, even as 17 of its constituents declined and 13 advanced. Snapping its three-day losing run, the broader NSE Nifty advanced 31.75 points or 0.13 per cent to settle at 24,641.80. The benchmark Nifty 50 has traded in a narrow range of less than 170 points in the three sessions this week after logging gains in the previous three weeks ended December 6.

Mid- and small-cap stocks continued to outperform. The BSE Midcap index rose 0.25 per cent, while the Smallcap index climbed 0.35 per cent. Some analysts also said sustained inflows from domestic and mutual fund investors into small-caps and midcaps, driven by the prospect of outsized returns, are driving the rally in the broader indices of the market.

Trade Setup for Thursday

The Nifty 50 index has been sustaining above the short-term critical moving average, suggesting a positive trend. “Despite this, momentum is lacking, and a strong upside move could occur once the Nifty decisively moves above 24,700. In that case, the Nifty might move towards 25,000. On the lower end, support is placed at 24,500,” said Rupak De, Senior Technical Analyst at LKP Securities

Bank Nifty has formed a small red candle on its daily chart. However, it faces short-term resistance near the 53,900-54,000 levels. On the downside, the index will find major support at 52,500, where the recent breakout point is. “As long as the index sustains above the 52,500 level, traders are advised to adopt a dips strategy in Bank Nifty,” said Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

Global Markets

US inflation accelerated for a second straight month in November 2024, reporting the steepest gain in the last seven months amid higher food prices and other sectors. However, this didn’t deter Wall Street from placing bets for another interest rate cut by the US Federal Reserve, with the policy verdict due next week.

US consumer price index (CPI) rose to 2.7 per cent last month from a year ago, up slightly from 2.6 per cent in October. The rise was said to be in line with economists’ expectations. Progress in lowering inflation toward the US central bank’s two per cent target has virtually stalled, with the report from report from the Bureau of Labor Statistics showing no improvement in the measure of underlying price pressures over the past four months.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stock picks for today. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has suggested three stock ideas. These include Bank of India, MCX, RailTel Corp of India, RCF, and HDFC Asset Management Company (AMC).

Ganesh Dongre’s day trading stocks
 

1.Bank of India: Buy at ₹115, Target Price ₹122, Stoploss ₹110

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around ₹122. The stock is currently maintaining a crucial support level at ₹110. Given the current market price of ₹115, 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 ₹122.

2.RCF: Buy at ₹180, Target Price ₹190, Stoploss ₹175

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around ₹190. The stock is currently maintaining a crucial support level at ₹175. Given the current market price of ₹180, 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 ₹190.

3.MCX: Buy at ₹6,710, Target Price ₹6,850, Stoploss ₹6,600

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around Rs. 6,850. The stock is currently maintaining a crucial support level at Rs. 6,600. Given the current market price of ₹6,710, 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. 6,850.

Sumeet Bagadia’s stocks to buy today

4.RailTel: Buy at ₹451.50, Target Price ₹483, Stoploss ₹436

RailTel is trading at ₹451.50, exhibiting strong bullish momentum following its recent breakout above the major resistance level of ₹450. The stock has also recently broken out of a falling trendline pattern, which typically signals a potential bullish reversal from a key support zone. Furthermore, RailTel is trading comfortably above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), reinforcing the positive trend.

The Relative Strength Index (RSI) stands at 57.15, indicating that the uptrend is healthy with further room for growth. If the stock maintains its position above the critical resistance level of ₹460, it would provide an ideal entry point for long positions. This technical setup is supported by a noticeable increase in trading volume, highlighting strong buying interest.

Traders may consider entering at the current price level of ₹451.50, with a stop loss at ₹436 and a target of ₹483. While this setup presents a compelling opportunity for potential gains, it is important to remain cautious of potential short-term volatility despite favourable technical indicators. Proper risk management is essential to navigate this trade successfully.

5. HDFC AMC: Buy at ₹4,543, Target Price ₹4,861, Stoploss ₹4,384

HDFC AMC is trading at ₹4,543.85, having recently rebounded from a key support zone. The stock is on the verge of breaking out of its consolidation range between ₹4,100 and ₹4,550, trading near its all-time high and confirming strong upward momentum.

If HDFCAMC manages to sustain above the critical resistance level of ₹4,550, it could present an ideal entry point for long positions, with a potential target of ₹4,861. This breakout is further supported by a noticeable increase in trading volumes, signalling strong buying interest from investors.

The Relative Strength Index (RSI) currently stands at 64.23, trending upward, indicating a healthy uptrend with room for further growth. Additionally, HDFCAMC is trading well above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), reinforcing the positive trend.

Traders considering an entry at the current price of ₹4,543.85 may target ₹4,861, with a stop loss set around ₹4,290 to manage risk effectively. While the trade setup looks promising, caution is advised due to potential short-term volatility. Proper risk management remains crucial to navigating this trade successfully.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, 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.