Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Monday — 23 December 2024

Stock Market Today: The domestic markets saw steep correction of almost 5% during the week ending 20 December, wiping out the gains of the past four weeks. The benchmark Nifty-50 Index and S&P BSE Sensex ended near their weekly lows at 23,857.5 and 78,041.59, respectively.  The Bank Nifty also ended more than 5% lower at 50,759.20, while Metals & Utilities were other top underperformers. The Realty and Healthcare however outperformed. The braoder indices also remained under pressure losing 3.5%

Trade setup for Monday

The Nifty closed below the 200-day SMA (standard Moving average) of 23800 and as long as it stays below ths level, weak sentiment is likely to continue. Below this level, the Nifty could slip to 23400-23200 . On the other hand, if it rises above 23800/ for Nifty and 78300 for sensex, the pullback formation is likely to continue up to 24000 for Nifty and 80000 for Sensex said Amol Athawale, VP-Technical Research, Kotak Securities

For the Bank Nifty index, the 200-Days Simple Moving Average (200-DSMA) near 50,500 will provide strong short-term support, whereas on the upside, hurdle is placed near 51,660 levels, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates

Global Markets

On Monday, markets will likely react to the US personal consumption expenditures (PCE) data for November, a key indicator for the US Federal Reserve’s future actions, said experts. 

The coming week is shortened due to holidays, and participants will closely monitor FII flow trends and global market performance for direction. Additionally, the scheduled expiry of December’s derivative contracts may amplify volatility, said Ajit Mishra – SVP, Research, Religare Broking

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. Bank of Maharashtra– Bagadia recommends buying Bank of Maharashtra at Ra 54.74 keeping Stoploss at ₹52.82  for a target price of ₹58.57

Bank Of Maharashtra is currently trading at ₹54.74 and is exhibiting a bullish trend, supported by the formation of higher highs and higher lows. The stock has recently reversed from a key support level and formed a morning star candlestick pattern on the daily timeframe, which is a strong indicator of upward momentum. This bullish reversal is further validated by a significant increase in trading volumes, reflecting strong buying interest from investors. In the short term, the stock is well-positioned to reach its target of ₹58.57.

2. Aartech Solonics Ltd- Bagadia recommends buying Aartech Solonics at ₹82.52 keeping Stoploss at ₹79 for a target price of ₹89

Aartech is currently trading at 82.52, exhibiting a bullish trend. A breakout is evident after the completion of a Bullish Flag pattern, indicating strong upward momentum. This breakout is further supported by increased trading volumes, confirming the strength of the move. Additionally, the stock has found strong support at its 50-day EMA levels. Trading near its resistance zone, AARTECH shows potential for continued upward movement. If the breakout sustains, the stock could reach a short-term target of 89.

Ganesh Dongre’s stocks to buy today

3.Bikaji Foods International Ltd – Dongre recommends buying Bikaji Foods at ₹774 for a Stoploss at ₹760 for a target price of ₹795

The stock having a substantial support at Rs.760, marking a crucial juncture in its recent trading. Presently, at Rs.774, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹760. The anticipated target for this trade is Rs.795, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock’s anticipated rally in the weeks ahead..

4. Life Insurance Corporation of India (LIC) -Dongre recommends buying Life Insurance Corporation of India at around ₹908 keeping Stoploss at ₹890 for a target price of ₹940.

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. 940. At present, the stock is maintaining a crucial support level at Rs.890. Given the current market price of ₹908 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. 940

5. Amber Enterprises India Ltd– Dongre recommends buying Amber Enterprises at around ₹6120 keeping Stoploss at ₹6000 for a target price of ₹6350

On the daily chart of this stock, a breakout at the Rs.6000 price level has been observed, signaling a potential upward trend. Complementing this breakout, the Relative Strength Index (RSI) is still turning up, indicating increasing buying momentum. Given these technical indicators, traders can consider buying on dips, entering the stock at a lower price point. To manage risk, a stop loss at ₹6000 is recommended. The target price for this strategy is Rs.6350 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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.