Stock market today: Trade setup for Nifty 50 to US recession fear; five stocks to buy or sell on Friday — August 16

Stock market today: Despite strong global market sentiments on the US Fed rate cut buzz, the Indian stock market remained flat on Wednesday. The Nifty 50 index finished marginally higher at the 24,143 mark, the BSE Sensex went up 149 points and closed at 79,105, whereas the Bank Nifty index went off 104 points and ended at 49,727. Cash market volumes on the NSE were 8.1 per cent lower than the previous session. However, the broad market indices witnessed sharp selling as the small-cap index fell around 0.57 per cent, whereas the mid-cap index slipped around 0.41 per cent. The advance-decline ratio remained below 1:1 but rose to 0.52:1.

Trade setup for Friday

On the outlook for Nifty today, Ruchit Jain, Lead Research at 5paisa.com, said, “In last few trading sessions, Nifty has traded within a broader range where the index did witness a pullback move from 23900, but was also unable to surpass the hurdle of 24400-24450. Thus, the next directional move in the index would be seen on a breakout beyond this zone; hence, one should take positions for a trended move beyond this zone only. If the Nifty breaks the mentioned support, then we could see a down move towards 23630, the 38.2 per cent retracement level of the up move from the election results in the day low to the recent high. On the higher side, a breakout above 24450 will only lead to a resumption of the broader uptrend.”

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, “The Bank Nifty index opened marginally negative and remained under pressure throughout the day, closing negatively at 49,727 levels. Technically, the index formed a red candle on the daily scale, indicating continued weakness. However, the index is finding support near the 49,650-49,660 levels. A sustained move below 49,650 could push the index toward the 49,000 level.”

US recession fear fades

“After the consumer price rebound report in the US CPI data on Wednesday, the US Fed rate cut hopes received a heavy dent. The market is expected to react negatively to this development. However, the fear of the US recession faded after the robust US job data on Thursday. Hence, some value buying is expected at the lower levels,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Stocks to buy today

Regarding shares to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended buying five stocks: HBL Power, Naukri, Titan, Tata Chemical, and Samvardhan Motherson.

Sumeet Bagadia’s stock recommendations for today

1] HBL Power: Buy at ₹634.40, target ₹686, stop loss ₹610.

HBL Power share is trading around 634.4 levels and is in a consolidation phase. After reaching an all-time high, the stock has stabilised near its demand zone. Recently, HBL Power’s share price witnessed a bounce back from ₹561, which was also its medium-term (50-day) EMA level, indicating a potential trend reversal. If the stock sustains above ₹640, it could continue its upward trajectory toward new highs.

2] Naukri: Buy at ₹7236.75, target ₹7840, stop loss ₹6960.

Naukri is trading near its all-time high at ₹7236.75, forming higher highs and lows on the daily chart. The stock has created a strong bullish candle supported by high trading volumes, indicating a continuation of the uptrend. Naukri recently bounced from its support zones, and if it maintains its position above ₹7300, it could likely continue its upward trajectory toward new highs.

Ganesh Dongre’s shares to buy today

3] Tata Chemical: Buy at ₹1020, target ₹1060, stop loss ₹995.

A significant bullish reversal pattern has been identified in the stock’s recent short-term trend analysis. This technical pattern indicates the potential for a temporary upward retracement in the stock’s price, with a possible target of around ₹1060. Currently, the stock holds a critical support level of ₹995 while trading at a market price of ₹1020. This setup presents a buying opportunity for investors, as the stock’s price may rise towards the identified target of ₹1060.

4] Titan: Buy at ₹3400, target ₹3600, stop loss ₹3350.

On the daily chart of this stock, a breakout at the ₹3400 price level has been observed, indicating the potential for an upward trend. This breakout is reinforced by the Relative Strength Index (RSI), which is still trending upwards, signalling growing buying momentum. Based on these technical indicators, traders may consider buying on dips to enter the stock at a more favourable price point. Setting a stop loss at ₹3350 is advisable to manage risk effectively. The target price for this strategy is ₹3600 in the coming weeks, suggesting a potential gain as the stock continues its upward movement.

5] Samvardhan Motherson: Buy at ₹184, target ₹195, stop loss ₹178.

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 ₹195. The stock is currently maintaining a crucial support level at ₹178. Given the current market price of ₹184, 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 ₹195.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.