Stock market today: Trade setup for Nifty 50, global markets to Israel-Iran conflict; 5 stocks to buy or sell Wednesday

Stock Market Today: Ending a day winning spree, the benchmark Nifty-50 index and S&P BSE Sensex ended 0.11-0.13% lower on Tuesday at 24,194.50 and 80,004.06, respectively. Bank Nifty ended almost flat at 52,191.50, while Auto and Pharma indices were the most significant losers. Most others held the fort, with the IT and FMCG indexes gaining maximum. Broader indices showed a similar trend, with smallcaps gaining nearly 1%.

Trade Setup for Wednesday

The Nifty’s consolidation is unfolding as expected, post-rebound. A decisive move beyond the 24,350 hurdle will require broader participation from all heavyweight sectors. Traders are advised to stay selective, using dips to accumulate quality stocks, as long as the Nifty holds above the 23,800 level, said Ajit Mishra, SVP, Research, Religare Broking Ltd.

Bank Nifty also consolidated, and any dip towards the support zone 52,000 – 51,800 levels should be considered a buying opportunity, said Jatin Gedia – Technical Research Analyst at Sharekhan. On the upside, immediate hurdle zone is placed at 52,600 – 52,800.

Israel-Iran war, Adani shares in focus

While higher tariffs on China proposed by US President-elect Donald Trump and caution ahead of monthly expiry were attributed as reasons for Tuesday’s profit booking, Adani group stocks remained under pressure. Global markets are closely watching developments in the Russia-Ukraine and Israel-Iran conflicts.

With the end of state elections in 2024, the government will focus on executing and fulfilling the budget plans. The inflation outlook has improved, driven by expectations of robust agricultural production, which will support the central bank and stock market due to reduced food inflation, said Vinod Nair, Head of Research, Geojit Financial Services. 

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. ADF Foods Ltd– Bagadia Recommends buying ADF Foods at ₹323.95, keeping stoploss at ₹311 for a target price of ₹345

ADF Foods is currently trading at ₹323.95. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of ₹315 and is rising quickly on the upside with substantial volume… There are expectations of further upward movement, potentially reaching ₹345 levels. On the downside, substantial support is evident near ₹311.

2. Jagsonpal Pharmaceuticals Ltd

Bagadia recommends buying Jagsonpal Pharmaceuticals at ₹696.2 keeping Stoploss at ₹670  for a target price of ₹740

Jagsonpal Pharmaceuticals’ daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher-high and higher-low pattern, and the company’s recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Ganesh Dongre’s stocks to buy today

3. Cipla Ltd – Dongre recommends buying Cipla Ltd at ₹1,492 with a stoploss at ₹1,475 and a target price of ₹1,535.

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 ₹1,535. The stock is currently maintaining a crucial support level at Rs.1,475. A buying opportunity is emerging given the current market price of Rs.1,492. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹1,535.

4. ICICI Bank Ltd – Dongre recommends buying ICICI Bank at ₹1,305 keeping a stoploss at ₹1,285 for a target price of ₹1,335

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.1,335. At present, the stock is maintaining a crucial support level at Rs.1,285. Given the current market price of Rs.1,305, 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.1,335

5. Shree Renuka Sugars Ltd–  Dongre recommends buying Shree Renuka Sugar at ₹42, with a stoploss at ₹40 for a target price of ₹46.

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 ₹46. The stock maintains a crucial support level at Rs.40. Given the current market price of ₹42, 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 ₹46

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.