Stock market today: Trade setup for Nifty 50 to global markets outlook, five stocks to buy

Stock Market Today: The benchmark Nifty 50, extending its record run, ended at fresh closing highs on September 26 . The late surge after a soft opening meant that the Nifty-50 index with gains of 211.90 points ended at 26,216.05 up 0.81% while S&P BSE Sensex with gains of 666.25 points ended at 85,836.12, up 0.78%

Bank Nifty at 54,375.35 also ended with 0.51% gains led by surge in PSU banks. Gains in Auto and metal stocks supported the markets while Nifty Consumer Durables closed in the red. Broader indices remained subdued for another session, with mid and small caps ending mixed. 

Trade setup for Friday

After Nifty ending with gains on Thursday, analysts expect momentum to continue. Technically, after a muted opening market successfully cleared 26000/85300 mark. Shrikant Chouhan, Head of Equity Research, Kotak Securities said that “We are of the view that, as long as market is trading above 26000/85300 the bullish setup is likely to continue.” On the higher side, it could move up till 26300-26375/86000-86300, while below 26000/85300 uptrend would be vulnerable. 

Bank Nifty broke out of the sideways consolidation 53800 – 54300 on the upside. we expect the momentum to continue towards 55000. Support base shift higher towards 54000 – 53900, said Jatin Gedia – Technical Research Analyst at Sharekhan. 

Global Markets

Asia and European markets on Thursday saw a surge in technology shares and China news as Beijing revealed additional stimulus plans aimed at boosting the country’s economy. Beijing unveiled additional plans to boost the second-biggest economy in the world, including cash transfers to the underprivileged and an alleged $140 billion infusion into the biggest state-run banks.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd expects  the bullish momentum in Nifty to continue supported by strong action in frontline stock. Globally, US Q2 GDP & PCE numbers would be important data to watch out

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking has recommended two stock picks for Wednesday. Also Ganesh Dongre, Senior Manager of technical Research at Anand Rathi has given another three stock picks for today.

These include TVS Motor Company Ltd,  BF Utilities Ltd , Bharat Petroleum Corporation Ltd, Indus Towers Ltd , Alembic Pharmaceuticals LTD 

Sumeet Bagadia’s stocks to buy today

1, TVS Motor Company Ltd. Sumeet Bagadia recommends buying TVS Motor Company at ₹2891.1 with Stop Loss at ₹2790  and target price at ₹3050

TVS Motor Company is exhibiting strong bullish momentum, currently trading at an all-time high of 2902 levels. The recent breakout above the crucial resistance at 2800 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors, said Bagadia

2. BF Utilities Ltd – Bagadia recommends buying BF Utilities Ltd at 1009.8 with Stoploss at ₹975 and target price at ₹1060

BF Utilities 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, stocks to buy today

3. Bharat Petroleum Corporation Ltd– Dongre recommended buying BPCL at ₹345 with a Stoploss at ₹335 with a Target price of ₹360

The stock found a substantial support level at Rs. 335, marking a crucial juncture in its recent trading. Presently, at Rs.345, 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 Rs.335. The anticipated target for this trade is Rs.360, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock’s anticipated rally in the weeks ahead, said Dongre

4. Indus Towers Ltd – Dongre recommends buying Indus Towers Ltd at ₹395 with a stoploss at ₹382 and target price of ₹420.

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. 420. At present, the stock is maintaining a crucial support level at Rs.382. Given the current market price of Rs.395, 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. 420, said Dongre

5. Alembic Pharmaceuticals LTD – Dongre recommends buying  Alembic Pharmaceuticals Ltd at ₹1200 with Stop Loss at ₹1160 and target price of ₹1260

On the daily chart of this stock, a breakout at the Rs. 1200 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. 1160 is recommended. The target price for this strategy is Rs. 1260 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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.