Stock market today: Trade setup for Nifty 50 to Gautam Adani; five stocks to buy or sell on Friday — Nov 22

Stock Market Today: Bribery charges against Adani Group Gautam Adani further impacted the already weak investor sentiments as the benchmark Nifty 50 Index ended 0.72% lower on Thursday. S&P BSE Sensex  also lost 0.52% to end at 77,155.79.  Bank Nifty saw half a per cent cut to end at 50,372.90. Realty and IT sector index, while cushioning the market fall, Metals, Pharma, and FMCG led the decline in others. Mid- and small-caps also saw a decline of 0.5%.

Russia-Ukraine war, Gautam Adani news in focus

On what dragged the Indian stock market on Thursday, Siddhartha Khemka, Head - Research at Wealth Management, Motilal Oswal said, “The market witnessed a broad-based selloff with Nifty trading in the negative territory throughout the day and closing with a loss of 0.7% at 23,350 on the back of heightened geo-political tension between Russia and Ukraine. Further adding to the pressure, the Adani Group faced renewed scrutiny as US prosecutors have charged founder Gautam Adani with participating in an alleged $250 million bribery scheme to secure solar energy contracts in India. Several banking stocks came under heavy selling pressure as investor concerns grew over their exposure to Adani Group companies.”

Trade Setup for Friday

For the traders now, 23350 -23400 for Nifty and 77150- 77300 for Sensex would be the key levels and above these, we could see one quick pullback rally till 23500-23550 for Nifty and 77700-78000 for the Sensex, said Shrikant Chouhan, Head Equity Research, Kotak Securities

Bank Nifty settled the day on a negative note at 50,373 levels. Technically, the index has found support near the 200-day simple moving average (DSMA). If the index sustains above today's high of 50,652, a pullback to the 51,000-51,500 levels is possible, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

Global Markets and Russia-Ukraine war

Asian markets ended in the red, and European markets were weak, too. 

The domestic market faced renewed pressure due to escalating tensions in the Russia-Ukraine conflict and heightened nuclear concerns. Additionally, the fresh Adani case with the US DoJ added to the market's woes, said Vinod Nair, Head of Research, Geojit Financial Services. Although there were signs of a slowdown in FII selling, it surged again, adversely affecting market sentiment particularly financials sector. Nair expects an improvement in the trend when global & domestic political issues stabilise."

Stocks to buy today

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi has suggested three stock ideas for today. Anshul Jain, Head of Research at Lakshmishree Investment and Securities also has recomended two stocks to buy today.

These stock picks include Power Grid Corporation of India Ltd, Jindal Steel & Power Ltd, GAIL India Ltd , Divi's Laboratories Ltd  and Amber Enterprises India Ltd

Ganesh Dongre's stocks to buy today

1. Power Grid Corporation of India Ltd- Dongre recommends buying Power Grid at ₹325 keeping Stoploss at ₹315 for a target of ₹335.The stock having a substantial support at Rs.315, marking a crucial juncture in its recent trading. Presently, at Rs.325, the stock has demonstrated a definitive reversal in price action, 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 ₹315. The anticipated target for this trade is Rs.335, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead.. 

2. Jindal Steel & Power Ltd- Dongre recommends buying Jindal Steel & Power at ₹871 keeping stoploss at ₹860 for a target price of ₹895.

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. 895. At present, the stock is maintaining a crucial support level at Rs.860. Given the current market price of ₹870 a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 895

3. GAIL India Ltd_ Dongre recommends buying GAIL at ₹185 keeping Stoploss at ₹180 for a target of ₹193

On the daily chart of this GAIL stock, a breakout at the Rs. 185 price level has been observed, signaling 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 at Rs.180 is recommended. The target price for this strategy is Rs.193 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

Anshul Jain's stocks to buy today

4.Divi's Laboratories Ltd - Anshul Jain recommends buying Divi's Laboratories at ₹5977 keeping stoploss ₹5937 with target price of ₹ 6077

The stock is looking strong in the technical chart. It has given flag pattern breakout on the daily chart. So one can expect uptrend in the stock in the near term.

5.Amber Enterprises India Ltd - Anshul Jain recommends buying Amber Enterprises at ₹6530 keeping Stoploss at ₹6450 keeping Target price of ₹6750.

The technical chart shows that the stock looks strong. It has given flag pattern breakout on the weekly chart. So one can expect uptrend in the stock in the near term.

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