Stock market today: Trade setup for Nifty 50 to Q2 results today; five stocks to buy or sell on Thursday — Nov 7

Stock Market Today: The Indian stock market added to its gains on Wednesday, with the Nifty50 index rising 1.12% to 24,484.05. S&P BSE Sensex also ended 1.13% higher at 80,378.13. Bank Nifty rose 0.21% to 52,317.40. Realty and Consumer Durables led the rally, well supported by Metals and Pharma while all sectoral indices ended in the green. Broder indices gained 2% following the trend.

Trade setup for Thursday

Nifty closed above its 10-day EMA for the first time since the start of this downtrend, which is a sign of a bullish trend reversal. Next resistance for the Nifty is seen in the band of 24,650-24,700 which happens to be the major swing low registered in October, said Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities. Support for the Nifty now shifts up to 24,300, Shah added.

Bank Nifty would need a decisive breach above the resistance zone of 52,500 levels to trigger a fresh upward move to the next target of 54,400 levels, provided the important support zone of 50,600 is sustained as of now, said Vaishali Parekh, Vice President—Technical Research, Prabhudas Lilladher.

Global market outlook & Q2 results today

Markets rallied as Donald Trump took a comfortable lead in US presidential polls crossing the 270 majority mark, said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd. 

Markets will be reacting on Friday to the US Fed and BOE interest rate decision due today. The Fed committee is expected to cut rates by  25bps. cut. We expect markets to see a near-term bounce back due to positive sentiments globally, Khemka said.

Among the key earnings slated for today are Mahindra and Mahindra (M&M), Trent, Lupin, Cummins, RVNL, Indian Hotel, NHPC, SAIL and Page Industries among others.

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 stocks to buy include Piramal Pharma Ltd, Deepak Fertilisers & Petrochemicals Corporation Ltd, Infosys Ltd, Ceat Ltd and Adani Ports and Special Economic Zone Ltd.

Sumeet Bagadia's stocks to buy today

1. Piramal Pharma Ltd- Bagadia recommends buying Piramal Pharma Ltd at ₹293.55, keeping a stop loss at ₹283 for a target price of ₹311.

Piramal Pharma, currently trading at 293.55, is displaying a strong bullish trend on the daily chart, following a recent breakout above the 285 level. This trend is characterised by a series of higher highs and higher lows, suggesting potential for continued upward momentum. The breakout is further supported by increased trading volume, reinforcing the stock’s positive trajectory. Recently, the stock achieved an all-time high of 307.9. This breakthrough indicates a likely continuation of the uptrend, setting a short-term target of 311 in line with the stock's prevailing bullish movement

2. Deepak Fertilisers & Petrochemicals Corporation Ltd- Bagadia recommends buying Deepak Fertilisers at ₹1,391.65, keeping a stop loss at ₹1,340 for a target price of ₹1,480.

The daily chart analysis of Deepak Fertilisers reveals a promising outlook for the upcoming week, signalling a sustained upward movement. Notably, the stock has formed a significantly higher high and higher low pattern, and the recent upward swing has successfully breached the neckline, establishing a new week high for the stock. This breakout suggests the potential for a substantial follow-through upward movement in the stock price.

Ganesh Dongre's stocks to buy today

3. Infosys Ltd - Dongre recommends buying Infosys at ₹1,826 with a stop loss of ₹1,790 for a target of ₹1,880.

The stock has substantial support at ₹1,790, marking a crucial juncture in its recent trading. Presently, at ₹1,826, 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 ₹1,790. The anticipated target for this trade is ₹1,880, representing the next significant resistance level. This strategy positions traders favourably to capitalize on the stock's anticipated rally in the weeks ahead.

4. Ceat Ltd - Dongre recommends buying Ceat Ltd at ₹2,790, keeping a stop loss at ₹ 2,740 for a target price of ₹2,880.

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 ₹2,880. At present, the stock is maintaining a crucial support level at ₹2,740. Given the current market price of ₹2,790, 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 ₹2,880.

5. Adani Ports and Special Economic Zone Ltd - Dongre recommends buying Adani Posrts at ₹1,370, keeping a stop loss at ₹1,245 for a target price of ₹1,420.

On the daily chart of this stock, a breakout at the ₹1,370 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 ₹1,245 is recommended. The target price for this strategy is ₹1,420 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.