Stock market today: Trade setup for Nifty 50 to Jackson Hole meeting, five stocks to buy or sell on Friday

Stock market today: Following the positive global market cues on the US Fed rate cut buzz, the Indian stock market ended higher for the sixth straight session on Thursday. The Nifty 50 index added 41 points and closed at 24,811. The BSE Sensex finished 147 points higher at 81,053, whereas the Bank Nifty index went up 300 points and ended at 50,985. In the broad market, the Small-cap index gained 0.47 per cent, while the Mid-cap index outperformed the frontline indices by logging an intraday rise of 0.67 per cent.

Trade setup for Friday

On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “The short-term trend of Nifty continues to be positive amidst range movement. A decisive move from here is expected to pull Nifty towards the new all-time high of 25,100 soon. Immediate support for Nifty today is at 24680.”

On the outlook for Bank Nifty today, Dhupesh Dhameja, Technical Analyst at SAMCO Securities, said, “On the daily chart, the index has broken out of its previous trading range with a gap, indicating a strong bullish breakout. This is further reinforced by the index closing above its 50-day Exponential Moving Average (DEMA), which had previously acted as resistance. Additionally, the index has confirmed its breakout above the 0.382 Fibonacci retracement level, adding confidence to the bullish structure.”

Jerome Powell’s speech at the Jackson Hole meeting

“All eyes will be on tomorrow’s US Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium. Investors would look for hints on interest rate cuts. Hopes are running high for a rate cut in the September meeting, followed by more cuts in subsequent meets. Thus, the market is likely to consolidate in the near term. While sectorial rotation and stock-specific action will be at play,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.

Stocks to buy today

Regarding shares to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended buying these five stocks: Aarti Pharmalabs, Balu Forge, RCF, NLC India, and NCC.

Sumeet Bagadia’s recommended stocks

1] Aarti Pharmalabs: Buy at ₹666.40, target ₹700, stop loss ₹642.

Aarti Pharmalab’s share is currently trading at ₹666.40. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹647 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹700 levels. On the downside, considerable support is evident at nearly ₹642.

2] Balu Forge: Buy at ₹648.30, target ₹685, stop loss ₹625.

Balu Forge’s share price is exhibiting bullish solid momentum, currently trading at an all-time high of ₹650. The recent breakout above the crucial resistance at ₹600 is a significant technical development, supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Ganesh Dongre’s shares to buy today

3] NLC India: Buy at ₹274, target ₹290. stop-loss ₹264.

On the daily chart of this stock, a breakout at the ₹274 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 of ₹264 is recommended. The target price for this strategy is ₹290 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

4] RCF: Buy at ₹203, target ₹215, stop loss ₹294.

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests a temporary retracement in the stock’s price, potentially reaching around ₹215. The stock is currently maintaining a crucial support level at ₹194. Given the current market price of ₹203, a buying opportunity is emerging. This suggests that investors consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹215.

5] NCC: Buy at ₹321, target ₹335, stop loss ₹313.

This stock is forming an inherently bullish rounding bottom pattern on the short-term chart. Currently priced at ₹321, this formation signals a potential upward trend. To effectively manage risk, a stop loss of ₹313 is recommended. The target price for this strategy is ₹335 in the upcoming weeks. This suggests a potential gain as the stock continues its upward trajectory, backed by the bullish technical signals.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.