Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Friday — 20 December 2024

Stock Market Today: Markets were plundered on Thursday following negative global cues. The benchmark Nifty 50 Index declined 1.02% and ended at 23,951.70 as it slipped below the psychological 24000 mark led by broad-based selling after the US Fed’s hawkish stance raised concerns over rate cuts next year. The S&P BSE Sensex also ended 1.20% lower at 79,218.05

Nifty Bank, at 51,575.70, ended 1.08% lower, while IT and Metals were among other prominent losers. The broader markets showed some resilience, ending with a smaller decline of 0.3%- 0.5%.

Trade setup for Friday

The next key support for Nifty lies at the 200-day exponential moving average (DEMA), around the 23,700 level and a break below this could lead to further downside for the index, said Ajit Mishra – SVP, Research, Religare Broking Ltd

The Bank Nifty index witnessed selling pressure and remains in a sell-on-rise mode with an immediate hurdle at 52000. The index if it breaches yesterday’s low, can slide down further towards the 200dma placed at 50482, said Kunal Shah, Senior Technical and Derivative Research Analyst, Mirae Asset Sharekhan

Global Markets to US Fed rate cuts

Nifty on Thursday opened lower on the back of weak global cues as the US Federal Reserve indicated slower pace of rate cut in 2025. Key economic data, including the US GDP and Bank of England’s interest rate decisions and tomorrow’s RBI MPC meeting minutes, remain critical for market direction. Overall, we expect Indian markets to remain subdued and track global cues in this volatile environment, said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

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.

Sumeet Bagadia’s stocks to buy today

1. Coforge Ltd – Bagadia recommends buying Coforge at ₹9657 keeping Stoploss at ₹9319 for a target price ₹10333

Coforge is currently trading at ₹9657, exhibiting a strong bullish trend characterized by the formation of higher highs and higher lows. The stock has been consistently marking new all-time highs, confirming sustained upward momentum. This positive movement is supported by a significant increase in trading volumes, indicating strong buying interest from investors. If COFORGE manages to sustain above the critical resistance level of ₹10000, it could present an ideal entry point for long positions, with a potential short-term target of ₹10333.

2. BSE Ltd – Bagadia recommends buying BSE Ltd at ₹5791.45 keeping Stoploss at ₹5589 for a target price of ₹6197

BSE is currently trading at ₹5791.45, exhibiting a strong uptrend as it continues its upward reversal from lower levels, signaling sustained bullish momentum. The stock has formed a bullish engulfing candlestick pattern on the daily timeframe and is approaching a key resistance level at ₹5850. A breakout above this level is expected to boost market sentiment, favoring buyers. Additionally, BSE is trading comfortably above its 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), further reinforcing the bullish trend.

Ganesh Dongre’s stocks to buy today

3.Emami Ltd-  Dongre recommends buying Emami Ltd at ₹600 keeping Stoploss at ₹585, for a target of   ₹620

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.620. At present, the stock is maintaining a crucial support level at Rs.585. Given the current market price of Rs.600, 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. 620.

4. State Bank of India – Dongre recommends buying State Bank of India at ₹833, keeping Stoploss at ₹820, for a target price of ₹855

We have seen a major support in this stock around Rs. 820 So, at the current juncture, the stock has again seen a reversal price action formation at the Rs. 833 price level, which may continue its rally till its next resistance level of Rs. 855 so traders can buy and hold this stock with a stop loss of Rs.820 for the target price of Rs.855 in the upcoming weeks.

5. ICICI Bank Ltd – Dongre recommends buying ICICI Bank at ₹ ₹1288, keeping stoploss at ₹1265 for a target price of ₹1320

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests that there could be a temporary retracement in the stock’s price, possibly to around Rs. 680 Currently, the stock is holding a crucial support level at Rs1265.

Given this scenario, there is potential for the stock to rebound towards the Rs.1320 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at Rs.1265 to manage risk effectively. The target price for this trade is Rs.1320.

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.