Stock market today: Trade setup for Nifty 50 to Q2 results today; five stocks to buy or sell on Friday — Nov 8

Stock Market today: After a pause of two days, markets continued their bearish phase on Thursday, with the benchmark Nifty 50 Index correcting 1.16% to 24,199.35, as investors took stock of the impact of Donald Trump's win. The S&P BSE Sensex also ended 1.04% lower at 79,541.79. The Bank Nifty corrected 0.77% to 51,916.50. All major sectoral indices saw corrections in line with the benchmark indices, with metals, pharma, and energy stocks leading the drag. Broader indices also remained under pressure, ending down by nearly half a per cent.

Trade setup for Friday

Nifty has been finding resistance at 24,500 and is hovering around crucial support zone of 24,200. As per Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, maintaining this support zone of 24,200 is crucial to keep the overall trend intact 

The Bank Nifty Index faced rejection around the 52,500 mark. However, it has held on to its crucial support zone of 51,750 – 51,650. Jatin Gedia – Technical Research Analyst at Sharekhan, expects the undertone to remain sideways to bullish from the short-term perspective. 

Global market outlook & Q2 results today

The November MSCI rejig is expected to raise India’s weightage in the MSCI Emerging Market Index from 19.3% to nearly 19.8%. BSE, Voltas, Alkem Laboratories, Kalyan Jewellers and Oberoi Realty will now be a part of MSCI Global Standard Index. At the same time, HDFC Bank will see the second tranche of its weightage increase on the index. Investors remained on the sidelines ahead of the US Fed interest rate decision-- where a 25bps rate cut was announced later -- with a close watch on Chair Jerome Powell's remarks for future direction, said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services. After the initial euphoria post Trump’s win in the presidential polls, the focus is back on the fundamentals and subdued September quarter results continue to weigh on domestic markets.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stock picks for Thursday. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi has suggested three stock ideas for today.

These include Caplin Point Laboratories Ltd, CarTrade Tech Ltd, Tata Consultancy Services Ltd , KNR Constructions Ltd and GAIL (India) Ltd

Sumeet Bagadia's stocks to buy today

1.Caplin Point Laboratories Ltd - Bagadia recommends buying Caplin Point Laboratories at ₹2,121.7 keeping stoploss at ₹2,045 for a target price of ₹2,250

Caplin Point is trading at 2,121.7, exhibiting a robust bullish trend on the daily chart. This follows a recent breakout from a consolidation phase, decisively moving above the neckline level of 2,110. The stock’s price action remains above key exponential moving averages, underscoring the strength of the uptrend. Additionally, recently reached an all-time high of 2,176.75, reinforcing the bullish momentum. Given these technical signals, the uptrend appears poised to continue, with a short-term target set at 2,250. This target aligns with the stock’s prevailing bullish trajectory and positive price action.

2. CarTrade Tech Ltd- Bagadia recommends buying CarTrade Tech at ₹1,204.9 with Stoploss at Rs1,160 with a target price of ₹1,270

CarTrade daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a 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 stocks to buy today

3. Tata Consultancy Services Ltd- Bagadia recommends buying TCS at ₹4,150 with stoploss at ₹4,100 keeping target at ₹4,240

The stock has substantial support at Rs.4,100, marking a crucial juncture in its recent trading. Presently, at Rs.4,150, 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 ₹4,100. The anticipated target for this trade is Rs.4,240, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead..

4. KNR Constructions Ltd- Dongre recommends buying KNR Constructions Ltd at ₹298 keeping stoploss at ₹290 with target at ₹315.

A notable bullish reversal pattern has emerged in the stock's recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock's price, potentially reaching around Rs. 315. At present, the stock is maintaining a crucial support level at Rs.290. Given the current market price of ₹298, 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. 315.

5. GAIL (India) Ltd - Dongre recommends buying GAIL at ₹210, keeping stoploss at ₹202 and a target price at ₹220

On the daily chart of this stock, a breakout at the Rs. 210 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 at Rs.202 is recommended. The target price for this strategy is Rs.220 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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.