Stock market today: Trade setup for Nifty 50 to US Fed minutes, five stocks to buy or sell on Thursday — August 22

Stock market today: The upside momentum with range-bound action continued in the Indian stock market on Wednesday. The Nifty 50 index surged 71 points and closed at the 24,770 mark; the BSE Sensex finished 102 points higher at 80,905, whereas the Bank Nifty index lost 117 points and ended at 50,685. However, the broad market outperformed the frontline indices, as the Small-cap index finished 0.87 per cent higher while the Mid-cap index closed 0.43 per cent upside.

Trade setup for Thursday

On the Nifty 50 index outlook, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “The short-term trend of Nifty continues to be positive with range-bound action. The market is now set to challenge another opening down gap resistance of 2nd August around 24,960. Hence, Nifty may move towards 24,960 and 25,100 next week. Immediate support for Nifty today is placed at 24,650.”

On the outlook for the Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, “The Bank Nifty opened with a gap down and remained under pressure in the first half. However, the index recovered in the second half, which helped it settle the day on a marginal negative note at 50,686. Technically, Bank Nifty formed a doji candle on the daily chart but failed to close above the 21-DEMA, which is around 50,760. A sustainable move above 50,800 could push the index towards the 51,200-51,500 zone.”

US Fed meeting in focus

“According to the US Fed minutes, most members favour an interest rate cut provided the progress in US inflation continues. So, bets are high about the beginning of the rate cut from the September US Fed meeting. Hence, we may expect bulls to outperform bears in the next few sessions,” 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 of Technical Research at Anand Rathi, recommended buying these five stocks: Suven Pharmaceuticals, Rupa, Swan Energy, Chennai Petroleum Corporation, and Deepak Fertilisers.

Sumeet Bagadia stock recommendations

1] Suven Pharmaceuticals: Buy at ₹1020.60, target ₹1105, stop loss ₹980.

SUVENPHAR is currently in an upward trend, forming higher highs and higher lows on the daily chart. The stock is trading within a consolidation range near its historical peaks. It shows signs of attempting to break through higher levels by forming a solid bullish candle that reflects the trend’s strength. If SUVENPHAR surpasses the ₹1030 mark, it could reach a target of ₹1105.

2] Rupa: Buy at ₹345.50, target ₹363, stop loss ₹333.

RUPA has recently exhibited a robust breakout from the critical resistance zone of ₹320 to ₹333 on the daily chart, consolidating the move with higher highs and higher lows. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

Ganesh Dongre’s shares to buy today

3] Swan Energy: Buy at ₹700, target ₹745, stop loss ₹680.

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 ₹745. The stock is currently maintaining a crucial support level at ₹680. Given the current price of ₹700, 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 ₹745.

4] Chennai Petroleum Corporation: Buy at ₹992, target ₹1040, stop loss ₹970.

On the daily chart of this stock, a breakout at the ₹992 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 ₹970 is recommended. The target price for this strategy is ₹1040 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Deepak Fertilisers: Buy at ₹2954, target ₹3050, stop loss ₹2910.

This stock is forming an inherently bullish rounding bottom pattern on the short-term chart. Currently priced at ₹2954, this formation signals a potential upward trend. To effectively manage risk, a stop loss at ₹2910 is recommended.

The target price for this strategy is ₹3050 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.