Stock market today: Trade setup for Nifty 50 to US dollar; 5 stocks to buy or sell on Tuesday — Dec 10

Stock market today: The Indian stock market closed lower after struggling to gain traction during the session on Monday, December 9. The stock market indices were dragged down by the FMCG segment as well as index heavyweights like Reliance Industries, on Monday. The Nifty 50 index closed 0.24 per cent lower at 24,619 points, compared to 24,677.80 points at the previous market close.

The BSE Sensex index closed 0.25 per cent lower at 81,508.46 points on Monday, compared to 81,709.12 points at the previous market close. 

Trade Setup for Tuesday

On the outlook for the Nifty 50 and the Bank Nifty index, Vaishali Parekh, vice president of technical research at Prabhudas Lilladher said “Nifty with an inside bar formation pattern on the daily chart has been consolidating near the 24,600-24,700 zone since the last 2 sessions and would need to breach above the 24,750 level decisively to carry on further, with the upward move for next targets of 25,200 and 25,800 levels as mentioned earlier, with overall bias maintained cautiously positive.”

“The zone near the significant 50EMA level of 24,400 would be the immediate support for the index, which needs to be sustained as of now,” said the stock market expert.

“Bank Nifty has been finding tough resistance near the 53,800 zone since the last 3 sessions, and with a rangebound movement, has been hovering near the 53,300-53,500 zone for quite some time. The 52,600 level would be the important support for the index, which needs to be sustained to maintain the overall bias intact and to expect a further rise,” said Parekh.

Parekh also said that the Nifty 50 Spot for today has support at 24,500 points, while the resistance lies at 24,800 points. The Bank Nifty index would have a daily range of 53,000 to 54,000. 

US Dollar

The US Dollar spot index was flat at 105.95, while the Euro strengthened against the dollar at $1.0576 after earlier falling nearly 0.3 per cent. On Monday, the US Dollar gained against the Japanese Yen to 151.2.

The Australian dollar gained 1.15 per cent against the US greenback, while the New Zealand Dollar rose 0.79 per cent on Monday after China announced a shift in its monetary policy stance to facilitate growth.

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 stocks for Tuesday.

These include City Union Bank, Lloyds Metals and Energy, Indian Railway Finance Corporation (IRFC), Hindustan Aeronautics (HAL), and Axis Bank.

Sumeet Bagadia stocks to buy today

1. City Union Bank Ltd. (CUB): Buy at ₹186.27; Target price at ₹195; Stop loss at ₹180.

CUB is exhibiting strong bullish momentum, and is currently trading at a 52-week high of 187.9 levels. The chart depicts a healthy uptrend backed by improving sentiment. The stock has maintained a strong upward momentum, as highlighted by the series of higher-highs and higher-lows. Recently, the price has approached ₹186.27, riding the wave of bullish strength. supported by robust trading volumes, reinforcing the strength in the stock.

Additionally, CUB is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 71.15 levels.

For traders, keeping an eye on the strong support near 180 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, CUB current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

2. Lloyds Metals and Energy Ltd. (LLOYDSME): Buy at ₹1,098; Target price at ₹1,180; Stop loss at ₹1,060.

LLOYDSME showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹1,098. The stock has been experiencing robust buying interest, leading to consecutive gains that could potentially lead to further upward movement after the recent surge, offering an optimistic outlook for investors

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock’s positive momentum. The RSI signals positive trends and aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength of LLOYDSME’s price action.

The surge in volume associated with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for LLOYDSME Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Ganesh Dongre stocks to buy today 

3. Indian Railway Finance Corporation Ltd. (IRFC): Buy at ₹159; Target price at ₹168; Stop loss at ₹154. 

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 ₹168. At present, the stock is maintaining a crucial support level at ₹154. Given the current market price of ₹159, 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 ₹168. 

4. Hindustan Aeronautics Ltd. (HAL): Buy at ₹4,618; Target price at ₹4,950; Stop loss at ₹4,500. 

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 ₹4950. At present, the stock is maintaining a crucial support level at ₹4500. Given the current market price of ₹4618, 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 ₹4950. 

5. Axis Bank Ltd. (AXISBANK): Buy at ₹1,162; Target price at ₹1,195; Stop loss at ₹1,150. 

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 ₹1,195. At present, the stock is maintaining a crucial support level at ₹1,150. Given the current market price of ₹1,162, 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 ₹1,195.

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.