On Tuesday, August 27, Indian stock market benchmarks, the Nifty 50 and the Sensex, ended the trading session with minimal changes. The Nifty 50 edged up by 7 points, closing at 25,017.75, while the Sensex gained 14 points to finish at 81,711.76. In contrast, the BSE Midcap and Smallcap indices saw more significant gains, each rising by half a percent.
Trade Setup for Wednesday
Rupak De, Senior Technical Analyst at LKP Securities, commented on the Nifty’s outlook for today: “The market sentiment is in an indecisive phase, with the Nifty closing with a Doji pattern on the daily chart. The strong presence of both call and put option writers at the 25,000 strike price reinforces the technical setup. As a result, the Nifty is likely to remain range-bound or may experience a slight dip in the near term. Immediate support is expected at 24,800, while a rise above 25,100 could push the Nifty towards 25,300.”
Regarding the Bank Nifty, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, shared his insights: “The Bank Nifty opened on a positive note, attracted buying interest, and closed positively at 51,279 levels. Technically, the Bank Nifty has formed a green candle on the daily chart and closed above the trend line resistance, indicating strength. The index is also holding firmly above its 21-DEMA support, located near 50,860 levels. As long as the index stays above 50,860, a ‘buy on dips’ strategy is advisable. In the short term, resistance is expected in the 51,800-52,000 range.”
Stocks to Watch Today
Market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, have recommended the following five stocks for buying today:
Sumeet Bagadia’s Recommendations
- Godrej Industries:
- Buy at: ₹1009.6
- Target: ₹1064
- Stop Loss: ₹973
Godrej Industries shares are showing strong bullish momentum after breaking past the ₹960 neckline. With the stock trading above key EMAs and an RSI of 76.19, further upward movement towards ₹1,064 is expected. A stop loss at ₹973 is recommended to manage risk.
- ICICI Lombard General Insurance Co Ltd:
- Buy at: ₹2153.35
- Target: ₹2277
- Stop Loss: ₹2077
ICICI Lombard is in a long-term uptrend and nearing its all-time high. Supported by a strong bullish candle and high trading volumes, the stock is likely to continue its upward trajectory. A stop loss at ₹2,077 is advised, with a target price of ₹2,277.
Ganesh Dongre’s Recommendations
- NCC Ltd:
- Buy at: ₹328
- Target: ₹345
- Stop Loss: ₹315
NCC is showing a bullish reversal pattern, suggesting a potential price rise towards ₹345. With the stock currently holding a crucial support level at ₹315, investors might consider buying at the current price.
- Reliance Industries:
- Buy at: ₹3002
- Target: ₹3060
- Stop Loss: ₹2950
Reliance Industries has broken out at the ₹3,002 level, indicating a potential upward trend. With the RSI showing increasing buying momentum, the stock presents a buying opportunity on dips. The target is set at ₹3,060, with a stop loss at ₹2,950.
- Tata Power:
- Buy at: ₹429
- Target: ₹445
- Stop Loss: ₹420
Tata Power is forming a bullish rounding bottom pattern on the short-term chart. Priced at ₹429, the stock shows signs of an upward trend. A stop loss at ₹420 is recommended, with a target price of ₹445 in the coming weeks.
