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

Stock Market today: The benchmark Nifty 50 index continued its winning spree for fourth consecutive session ending at 24,467.45, up 0.04% on  Wednesday. The SP&P BSE Sensex also ended 0.14% higher at 80,956.33. The Bank Nifty rising 1.10 % ended at 53,266.90, leading the gains as Realty, Pharma Healthcare stood among prominent gainers while FMCG , Metals, Auto, oil and gas ended in the red. Momentum persisted in mid and smallcap indices too that gained nearly a percent each.

Trade Setup for Thursday

In terms of support and resistance levels, 24350-24250 for Nifty and 80500-80100 for Sensex  will act as key support areas, while 24550-24625 for Nifty and 81100-81500 for Sensex could serve as crucial resistance zones for the bulls, said Shrikant Chouhan, Head Equity Research, Kotak Securities: 

If the Nifty Bank index maintains above 52,500 levels, then it may approach towards 53500-54,000 levels, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. 

Global Markets and RBI MPC in focus

Market will watch out for comments from Fed chair Powell and US jobs data to be released tomorrow. Going forward, we expect Nifty to sustain its gradual upmove, driven by positive developments in government policies and a potential increase in liquidity resulting from the RBI’s upcoming policy decisions, 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. Computer Age Management Services Ltd– Bagadia recommends buying Computer Age Management Services (CAMS) at ₹5181.75, keeping Stoploss at ₹4990, for a target price of ₹5500

CAMS 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.

2. Federal Bank Ltd– Bagadia recommends buying Federal Bank at ₹215.44 keeping Stoploss at ₹207 for a target price of ₹229

Federal Bank stock is currently positioned at 215.44 levels, has shown robust upward momentum. The stock’s recent breakout was supported by significant trading volume, indicating strong investor interest. The chart reveals a steady climb, with the 20-day EMA trending upward and converging towards the 50-day and 100-day EMAs. This alignment of moving averages suggests a continuation of the bullish trend if supported by further buying pressure., affirming its inherent strength.

Ganesh Dongre’s stocks to buy today

3. Bharat Dynamics Ltd– Dongre recommends buying Bharat Dynamics at around ₹1220 keeping Stoploss at ₹1180 for a target price of   ₹1265

The stock having a substantial support at Rs.1180, marking a crucial juncture in its recent trading. Presently, at Rs.1220, 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 ₹1180. The anticipated target for this trade is Rs.1265, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock’s anticipated rally in the weeks ahead..

4. Vedanta Ltd – Dongre recommends buying Vedanta at ₹468, keeping Stoploss at ₹460, for a target price of ₹485.

In the recent short-term trend analysis of the Vedanta 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. 485. At present, the stock is maintaining a crucial support level at Rs.460. Given the current market price of ₹468 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. 485

5. GAIL India Ltd – Dongre recommends buying GAIL at ₹207, keeping Stoploss at ₹200, for a target price of ₹218

On the daily chart of this stock, a breakout at the Rs. 207 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 Rs.200 is recommended. The target price for this strategy is Rs.218 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.