Stock market today: Trade setup for Nifty 50 to global markets, five stocks to buy or sell on Tuesday — Sept 3

Stock market today: Despite mixed trends in the Asian stock markets and a retreat in the European stock market from the record high, the Indian stock market extended its uptrend for the 13th straight session. The Nifty 50 index finished 37 points higher at the 25,273 mark, the BSE Sensex went up 194 points and closed at 82,559, while the Bank Nifty index ended 71 points upward at 51,422. Cash market volumes on the NSE were low at ₹1.11 lakh crore. The broad market indices ended minorly in the negative even as the advance-decline ratio dipped to 0.98:1.

Trade setup for Tuesday

Speaking on the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “The short-term trend of Nifty is intact. Though Nifty is placed at the hurdles of around 25,350 (1.382% Fibonacci extension), there is still no indication of any significant reversal pattern building at the highs. A decisive move only above 25,400 could open the next upside target of 25,800. Immediate support for Nifty today is placed at 25,100.”

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, “The Bank Nifty began the day on a strong note but encountered profit booking and settled the day positively at 51,440 levels. Technically, the index formed a red candle on the daily chart but stayed above the trend line support and the 21-DEMA, which is near 51,000. As long as the index remains above 51,000, a ‘buy on dips’ strategy is recommended. On the upside, the rally might extend to 51,800-52,000.”

Global markets today

“While key indices continued to be in a record-breaking spree on the back of selective buying in frontline stocks, several sectoral indices ended in red, indicating that the bulls are beginning to lose steam. Investors would wait for the outcome of the key US jobs data to be released on Friday, which will be key for interest rate decisions by the US Fed in the current month,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

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: Thangamayil Jewellery, Patanjali Foods, Balkrishna Industries, ONGC, and Wipro.

Sumeet Bagadia’s stock recommendations today

1] Thangamayil Jewellery: Buy at ₹2227.15, target ₹2345, stop loss ₹2145.

Thangamayil Jewellery is exhibiting bullish solid momentum, trading at an all-time high of 2320.95. The recent breakout above the crucial resistance at 2150 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.

2] Patanjali Foods: Buy at ₹1969.45, target ₹2070, stop loss ₹1899.

Patanjali Foods’ 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’s shares to buy today

3] Balkrishna Industries: Buy at ₹2895, target ₹2995, stop loss ₹2850.

The stock found a substantial support level at Rs.2850, marking a crucial juncture in its recent trading. At ₹2895, the stock has demonstrated a definitive price-action reversal, 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 ₹2850. The anticipated target for this trade is ₹2995, representing the next significant resistance level. This strategy positions traders favourably to capitalize on the stock’s expected rally soon.

4] ONGC: Buy at ₹326, target ₹345, stop loss ₹320.

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 ₹345. The stock is currently maintaining a crucial support level at ₹320. Given the current market price of ₹326, 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 ₹345.

5] Wipro: Buy at ₹532, target ₹555, stop loss ₹508.

On the daily chart of this stock, a breakout at the ₹532 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 ₹508 is recommended. The target price for this strategy is ₹555 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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.