Stock market today: Trade setup for Nifty 50 to Q2 results today; five stocks to buy or sell on Thursday — Nov 14

Stock Market Today: The correction in the Indian stock markets intensified on Wednesday. The Nifty 50 index ended 1.36% lower at 23,559, marking its fifth consecutive session decline. The benchmark S&P BSE Sensex also ended 1.25% lower at 77,690.95. Bank Nifty, at 50,088.35, ended 2.09% lower as Auto, Metals, and Realty saw similar cuts. Most other sectoral indices corrected more than 1%, while mid and small caps.

Trade Setup for Thursday

The current market texture is weak but oversold, and Shrikant Chouhan, Head Equity Research, Kotak Securities, said that for traders now, the 200-day SMA (Simple Moving Average), 23500 for Nifty and 77500 for Sensex, would act as a sacrosanct support zone. Above the same, we could expect one technical bounce back until 23800-23850 for Nifty and 78300-78500 for Sensex.

Bank Nifty has witnessed a breakdown and is now heading towards 49700, which is the 200-day moving average. On the upside, 50800 – 50900 shall act as an immediate hurdle zone from a short-term perspective, said Jatin Gedia, Technical Research Analyst at Sharekhan.

Global market outlook & Q2 results today

Asian markets saw weakness, though European markets were marginally higher on Wednesday. 

The correction in domestic markets reflects investors' growing caution amid rich valuations and macroeconomic uncertainties, with both Nifty and Sensex falling to their respective five-month lows today, said Vikram Kasat, Head - Advisory,  Prabhudas Lilladher

The latest downturn was intensified by sustained foreign investor outflows, disappointing corporate earnings, and rising inflation, dampening hopes of a rate cut by RBI in the near future. Further, with the end of weekly Bank Nifty derivatives contracts, traders are expected to be unwinding positions, possibly weighing on banking stocks, said Kasat

Stocks to buy today

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

These include Krishna Institute of Medical Sciences Ltd, Gillette India Ltd, Piramal Pharma Ltd , Bharat Electronics Ltd and Hindustan Unilever Ltd

Sumeet Bagadia's stocks to buy today

1. Krishna Institute of Medical Sciences Ltd- Bagadia recommends buying Krishna Institute at ₹554.2, keeping Stoploss at ₹533  for a target price of ₹585.

Krishna Institute stock is trading around ₹554.2, showing some consolidation after a recent downward movement. The stock has been moving in a range, trying to find stability before making its next move. It has strong support at ₹533 (near the 50-day Exponential Moving Average or EMA) and resistance around ₹565. If the price breaks above ₹565, it could lead to a new upward trend, pushing the stock towards ₹585.

2. Gillette India Ltd- Bagadia recommends buying Gillette at ₹9556.15 keeping Stoploss at ₹9222 with a target price of ₹10050

Gillette is trading at ₹9556.15 and has entered a consolidation phase after reaching an all-time high of ₹10633. Since then, the stock has been forming a series of lower highs and lower lows, It is currently trading within a narrow range, hovering between the 20-Day EMA at ₹9484 and the 50-Day EMA at 9064, suggesting that it is finding support at these key moving averages. A decisive breakout above the ₹9700 level could indicate a potential resumption of the uptrend, drawing renewed buying interest and potentially driving the stock toward a short-term target of ₹10050

Ganesh Dongre's stocks to buy today

3. Piramal Pharma Ltd - Dongre recommends buying Piramal Pharma at   ₹260, keeping Stoploss at ₹250 for a target price of ₹275.

The stock has substantial support at Rs.250, marking a crucial juncture in its recent trading. Presently, at Rs.260, 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 ₹250. The anticipated target for this trade is Rs.275, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead.. 

4. Bharat Electronics Ltd- Dongre recommends buying Bharat Electronics at ₹282 keeping Stoploss at ₹270 keeping target price of ₹300.

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 ₹300. Currently, the stock is maintaining a crucial support level at ₹270. Given the current market price of ₹282, 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 ₹300.

5. Hindustan Unilever Ltd - Dongre recommends buying Hindustan Unilever at ₹2460 keeping Stoploss at ₹2410 for a target price of ₹2530.

On the daily chart of this stock, a breakout at the ₹2460 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 ₹2410 is recommended. The target price for this strategy is ₹2530 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