Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Wednesday — Dec 11

Stock Market Today: Domestic equity benchmarks Nifty 50 and Sensex settled flat in the previous session. Gains in shares of select heavyweights, such as Infosys, ICICI Bank and State Bank of India (SBI), were offset by losses in those of Reliance Industries Ltd (RIL), Bharti Airtel and Larsen and Toubro (L&T).

After logging gains in the last three weeks until Friday, the Nifty 50 has since traded in a narrow range of less than 170 points. Falling for the third day, the NSE Nifty dropped by 8.95 points or 0.04 per cent to settle at 24,610.05. In the intraday trade, it slipped 108.35 points or 0.44 per cent to hit a low of 24,510.65.

The 30-share BSE Sensex edged up 1.59 points to close at 81,510.05, with 16 components closing higher and 14 ending lower. The broader market outperformed, maintaining its positive trend, led by mid- and small-caps. The BSE Midcap index rose 0.30 per cent, and the smallcap index climbed 0.33.

The BSE IT index reached a record high of 45,154.10 in anticipation of improvement in US IT spending. Reliance Industries, the second-heaviest stock in the Nifty 50 index, fell after foreign brokerage J.P. Morgan flagged near-term risks to fiscal year 2025 earnings growth.

Trade Setup for Wednesday

The Nifty 50 index formed a small red candle on the daily chart. However, the index holds above the breakout point of the inverted head and shoulder pattern, showing strength. On the downside, 100-Day Exponential Moving Average (100-DEMA) support is near 24,340.

“As long as the index sustains above it, traders are advised to adopt a buy-on-dips strategy. On the upside, the index might test 24,800-25,000 in the short term,” said Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

Bank Nifty has formed a green candle on its daily chart, signifying strength. However, the index still faces short-term resistance at the 53,900-54,000 levels. If the index sustains above 54,000 levels, the rally could extend further towards 54,500.

“On the downside, the index will find major support at 52,500, where the recent breakout point is placed. As long as the index sustains above the 52,500 level, traders are advised to adopt a dips strategy in Bank Nifty,” added Yedve.

Global Markets

D-Street experts say upcoming inflation data from the US and India are critical for insights into potential future rate cuts. India’s consumer price index (CPI)–based inflation will serve as a key indicator of underlying earnings growth, which has been downgraded in H1FY25. The US CPI data, due later today, will provide cues for the US Federal Reserve meeting next week.

Wall Street investors expect the year’s third cut to interest rates. Since September, the US Fed has been easing its main interest rate from a two-decade high to lift the slowing jobs market after bringing inflation nearly down to its two per cent target. Lower interest rates would help support the economy, but they could also provide more fuel for inflation.

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 Baroda, Godrej Consumer Products, Marico Ltd, LTI Mindtree, and Shriram Finance.

Ganesh Dongre’s day trading stocks
 

1. Bank of Baroda: Buy at ₹264, Target Price ₹275, Stoploss ₹258

The stock has substantial support at Rs.258, marking a crucial juncture in its recent trading. At Rs.264, the stock has demonstrated a definitive price-action reversal, 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 ₹258.

The anticipated target for this trade is Rs.275, representing the next significant resistance level. This strategy positions traders favourably to capitalize on the stock’s anticipated rally in the weeks ahead.

2. Godrej Consumer Products: Buy at ₹1,135, Target Price ₹1,375, Stoploss ₹1,100

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. 1,375.

Currently, the stock is maintaining a crucial support level at Rs.1,100. Given the current market price of Rs. 1,135, 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. 1,375.

3. Marico Ltd: Buy at ₹615, Target Price ₹634, Stoploss ₹605

On Marico stock’s daily chart, a breakout at the Rs.615 price level has been observed, signalling 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 ₹605 is recommended. The target price for this strategy is Rs.634 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

Sumeet Bagadia’s stocks to buy today

4. LTI Mindtree: Buy at ₹6,579.30, Target Price ₹7,040, Stoploss ₹6,349

LTI Mindtree share is trading at ₹6,579.30 and is on the verge of breaking out of the daily range, forming a rounding bottom pattern on the daily chart. This formation, supported by a notable increase in trading volumes, indicates strong buying interest and bolsters the bullish outlook. If LTI Mindtree stock sustains above the key level of ₹6,600, it could witness an upward movement towards a target of ₹7,040.

The Relative Strength Index (RSI) stands at 71.75, reflecting increasing buying momentum and confirming the bullish sentiment. Furthermore, the stock is trading above its critical moving averages, including the 20-day, 50-day, and 200-day EMAs, underscoring the strength of the ongoing positive trend.

Given the favourable technical setup and supporting indicators such as RSI and moving averages, it is recommended that you enter a long position in LTI Mindtree shares at the current market price of ₹6,579.30. A stop loss at ₹6,349 ensures effective risk management, while a target of ₹7,040 offers an attractive risk-reward ratio aligned with the stock’s bullish trajectory.

5. Shriram Finance: Buy at ₹3,186.50, Target Price ₹3,410, Stoploss ₹3,075

Shriram Finance share is currently trading at ₹3,186.50, showing a strong bullish trend characterised by the formation of higher-highs and higher-lows and a reversal from support. The stock is on the verge of breaking out of a consolidation phase, which confirms its upward momentum.

This potential breakout is supported by a substantial increase in trading volumes, signalling strong investor buying interest. Given this momentum, Shriram Finance appears to target ₹3,410 in the short term. The Relative Strength Index (RSI) is at 59.05, indicating robust bullish momentum. The stock comfortably trades above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), further reinforcing the positive trend.

If Shriram Finance stock price sustains above the key resistance level of ₹3,200, it presents a favourable opportunity for long positions. Traders may consider entering at the current price, aiming for a target of ₹3,410 while setting a stop loss at ₹3,075 to manage risk effectively. Given the elevated RSI and potential short-term volatility, sound risk management is crucial to protect against any downside.

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.