Stock market today: Nifty 50 trade setup, US Fed outcome, IPO market action — Eight stocks to buy
Stock market news: The Indian stock market declined for the third straight session on Wednesday to close at nearly a one-month low, dragged by a fag-end selloff in consumer durables, private banks and IT shares. Investors stayed on the sidelines ahead of the US Federal Reserve outcome that was released in the overnight trade.
In a volatile session, the BSE Sensex dropped by 275 points, or 0.32%, to settle at 84,391, a level not seen since November 11, as per a PTI report. The 50-share NSE Nifty fell by 82 points, or 0.32%, to close at a month’s low of 25,758.
US Fed meeting outcome
The United States Federal Reserve cut its benchmark interest rate by 0.25%, bringing the federal funds rate to its lowest level in more than three years. The new target range now stands between 3.5% and 3.75%, down from 3.75% to 4%.
This marks the Fed’s third consecutive rate cut since September, reducing the rate by a total of 0.75% this year.
The US Federal Reserve held its two-day monetary policy meeting between December 9 and December 10. According to the CME Group’s FedWatch Tool, the likelihood of a 25 basis point cut in the policy rate, which would lower the Federal Funds rate to between 3.5% and 3.75%, was at 87.4% ahead of the announcement.
IPO market action
The action in the primary market will remain high today. While two IPOs that opened on Wednesday — Nephrocare Health Services and Park Medi World — will enter their second day of bidding, the allotment for two IPOs, namely Wakefit Innovations and Corona Remedies will be finalised today, December 11.
Market outlook and key drivers
Vinod Nair, Head of Research, Geojit Investments Limited, said global equity markets experienced continued volatility due to rising Japanese bond yields and indications of BOJ monetary tightening, which are fostering risk-off sentiments in emerging markets. Focus now shifts to the US Fed meeting, he said.
Indian markets mirrored global caution, weighed down by persistent FII outflows, INR weakness, and uncertainty surrounding U.S.–India trade negotiations despite ongoing discussions. In the near term, market direction will be influenced by central bank cues and clarity on trade developments, he added.
Trade Setup for Thursday
Rupak De, Senior Technical Analyst at LKP Securities, said, “Again, bears remained at the helm as the Nifty revisited yesterday’s low, reinforcing a bearish bias. The index once again found support near the 50 EMA. The RSI on the daily timeframe has slipped out of its recent consolidation. Moreover, the index has broken below the 50% retracement of the previous rise from 25,318 to 26,325, indicating weakness.”
In the short term, the index is likely to stay under pressure with immediate support at 25,700, said De, adding that a decisive breakdown below this level could open a correction toward 25,610 and 25,530. “On the upside, resistance is placed at 25,870 and 25,960-26000.”
Stocks to buy today
Market experts recommended eight intraday stocks. The experts include Sumeet Bagadia (Choice Broking), Ganesh Dongre (Anand Rathi), and Shiju Koothupalakkal (Prabhudas Lilladher).
Recommended eight intraday stocks for today are: Eicher Motors, AU Small Finance Bank, ICICI Bank, Infosys, Punjab National Bank, Paradeep Phosphates, Chennai Petro and Thirumalai Chemicals.
Sumeet Bagadia’s stock picks
Eicher Motors: Bagadia recommended buying Eicher Motors shares at ₹7228, with a stop loss at ₹6975 and a target price of ₹7734.
Bagadia said that the auto stock is currently trading at 6280 and maintaining a strong upward trajectory. The stock has been forming a series of higher highs and higher lows, indicating sustained bullish momentum. The recent price action suggests a breakout attempt from a broad range-bound structure, resembling a horizontal channel that has been tested multiple times. This breakout is further validated by the stock marking a fresh All-time high of 7294, supported by consistent volume activity. The price action remains well above key exponential moving averages, indicating strong alignment across short- and long-term trends. Immediate resistance is seen near its higher levels, and a breakout above this level could pave the way for a short-term target of 7734.
“On the downside, immediate support lies around 7160. The Relative Strength Index (RSI) is currently at 60.24 and trending higher, suggesting strengthening buying interest. For effective risk management, a stop-loss near 6975 is advisable to safeguard against any potential market pullbacks.”
AU Small Finance Bank: Bagadia recommends buying AU Small Finance Bank at ₹994, with a stop loss at ₹960 and a target price of ₹1062.
AUBANK is currently trading at 994, maintaining a strong upward trajectory, as the stock has consistently formed higher highs and higher lows, reflecting sustained bullish momentum, the analyst noted. It recently reached an all-time high of 1007.25, with a key resistance level around its higher levels. A breakout above this level could further accelerate buying interest. The Exponential Moving Averages (EMAs) for the 20, 50, 100, and 200-day periods are all trending upwards, reinforcing the bullish outlook.
“The price is trading above all major EMAs, indicating strong positive sentiment and continued strength in the stock. If AUBANK manages to close above the 1008 resistance level, it could gain further traction toward a short-term target of 1062. Traders should monitor price action around this resistance zone for confirmation of a breakout,” he added.
On the downside, immediate support is located at 972. The Relative Strength Index (RSI) is currently at 76.49 and trending upward, reflecting growing buying momentum. To manage risk effectively, Bagadia said a stop-loss at 960 is suggested to guard against any unexpected market reversals.
Ganesh Dongre’s stock to buy
ICICI Bank: Ganesh Dongre of Anand Rathi recommended buying ICICI Bank stock at ₹1360 with a stop loss at ₹1345 and a target price of ₹1398.
“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. 1398. At present, the stock is maintaining a crucial support level at Rs.1345. Given the current market price of Rs. 1360, a buying opportunity is emerging,” said Dongre.
This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 1398, he added.
Punjab National Bank: Dongre also recommended a buy call on Punjab National Bank (PNB) at ₹118 with a stop loss at ₹114 and a target price of ₹125.
The analyst said there is major support in this stock around ₹114. “So, at the current juncture, the stock has again seen a reversal price action formation at the ₹118 price level, which may continue its rally till its next resistance level of ₹125; so traders can buy and hold this stock with a stop loss of ₹114 for the target price of ₹125 in the upcoming weeks,” said Dongre.
Infosys: The Anand Rathi analyst has a buy call on Infosys at ₹1585 with a stop loss at ₹1560 and a target price of ₹1625.
“Stock has exhibited a strong, notable, continuous bullish pattern, offering another promising opportunity for short-term traders. The stock is currently priced at ₹ 1585 and maintaining a strong support at ₹ 1560. The technical setup indicates the potential for a price retracement towards the ₹ 1625 level,” Dongre noted.
With the stock reversing from a support base and showing signs of renewed strength, entering at the current market price with a stop-loss at ₹ 1560 offers a prudent approach to capturing the anticipated upside, he said.
Shiju Koothupalakkal’s stock recommendations
Paradeep Phosphates: Shiju Koothupalakkal recommended buying Paradeep Phosphates at ₹157, with a stop loss of ₹154 and a target price of ₹166.
The stock has overall witnessed a decent correction from the 200 zone and currently has shown signs of improvement in the bias, taking support near the 150 level and volume participation is gradually increasing, anticipating for further rise in the coming sessions, said Kuthupalakkal.
“The RSI is well positioned consolidating near the oversold zone and has signalled a buy to carry on with the positive move, with much upside potential visible. With the chart technically looking good and attractive, we suggest buying the stock for an upside target of 166, keeping the stop loss at 154 level,” he added.
Chennai Petroleum: Koothupalakkal has a buy recommendation on Chennai Petro at ₹945.80, with a stop loss at ₹925 and a target price of ₹990.
The stock after witnessing a consolidation period near the 920 zone for quite some time maintaining above the important 50EMA level at 897 zone has indicated a positive candle formation on the daily chart to improve the bias expecting for further rise in the coming days, he said.
“The RSI has recently corrected well from the highly overbought zone and is currently well positioned, signalling a buy with upside potential visible and with bias improving, can anticipate for further upward move in the coming days. With the chart technically looking attractive, we suggest buying the stock for an upside target of 990, keeping the stop loss of 925 level,” the Prabhudas Lilladher analyst added.
Thirumalai Chemicals: Koothupalakkal recommended buying the chemical stock at ₹229.78, with a stop loss of ₹225 and a target price of ₹247.
The stock, having witnessed a steep correction from 328 zone, has shown signs of taking support near the 209 zone and indicated a significant pullback with a positive candle formation on the daily chart with rising volume participation visible, to improve the bias anticipated for further rise in the coming sessions, said the analyst.
“The RSI has indicated a positive trend reversal to signal a buy from the highly oversold zone, and with much upside potential visible, can carry on with the positive move further ahead. With the chart technically looking good, we suggest buying the stock for an upside target of 247, keeping the stop loss of 225 level,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
