Stock market today: Trade setup for Nifty 50 to Q2 results today; five stocks to buy or sell on Tuesday — Nov 5

Stock Market Today: The Nifty-50 Index saw a sharp correction on Monday, ending 1.27% lower at 23,995.35. The S&P BSE Sensex also saw a sharp cut of 1.18% to 78,782.24. The Bank Nifty, too, corrected to 51,215.25 in tandem with the benchmark Indices, as Metals Realty and Oil& Gas saw steeper corrections. 

Trade setup for Tuesday

The current market texture is weak but oversold, so the strong possibility of one intraday pullback rally is not ruled out, said Shrikant Chouhan, Head Equity Research, Kotak Securities. For the day traders now, 23800 for the Nifty and 78500 for the Sensex would be the key support zone. Above the same, it could bounce back until 24050.

The Bank Nifty is likely to trade within a range of 52500 – 50500 and with a negative bias, said Jatin Gedia, technical research analyst at Sharekhan. Crucial support is placed at 50720 – 50600, while resistance is placed at 51750 – 51800. 

Global market outlook and Q2 Results Today

As expected, India is underperforming its global peers due to excess valuation, said Vinod Nair, Head of Research, Geojit Financial Services. Weak Q2 earnings have deepened the selloff, dampening investor sentiment. Continued volatility is anticipated in the short term as attention shifts to the closely contested US presidential election. Additionally, key economic events, such as the US Fed and BoE policy decisions, will be critical in shaping market movements.

Stocks to buy today

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

These are V-Guard Industries Ltd, Max Healthcare Institute Ltd , Tata Consultancy Services Ltd , Power Finance Corporation Ltd and Samvardhana Motherson International Ltd

Sumeet Bagadia's stocks to buy today

1. V-Guard Industries Ltd- Bagadia recommends buying V-Guard Industries at ₹450.5 keeping stoploss at ₹435 for a target price of ₹482

V-Guard is currently trading near ₹450.5, displaying strong bullish momentum with a prominent bullish candle, signaling the likelihood of continued upward movement. The stock has recently broken out of a falling parallel channel pattern on the daily chart, accompanied by increased trading volumes, which indicates robust buying interest. VGUARD should sustain above the ₹460 level, it is well-positioned to move higher, with a potential target price of ₹482.

2.Max Healthcare Institute Ltd- Bagadia recommends buying Max Healthcare Institute at ₹1036.6 keeping Stoploss at ₹994 for a target price of ₹1121

Max Healthcare is currently trading at ₹1036.6, taking support from a rising trendline on the weekly chart. The price recently reversed strongly from this trendline, forming a Morning Star pattern, which, along with a noticeable increase in trading volumes, adds confidence to a bullish outlook. If Max Healthcare sustains above the key resistance level of ₹1050, it could potentially advance toward an anticipated target of ₹1121.

Ganesh Dongre's stocks to buy today

3.Tata Consultancy Services Ltd - Dongre recommends  buying TCS at ₹3968 keeping Stoploss at ₹3925 with a target price of ₹4050

The stock having a substantial support at Rs.3925, marking a crucial juncture in its recent trading. Presently, at Rs.3968, 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 ₹3925. The anticipated target for this trade is Rs.4050, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead..

4. Power Finance Corporation Ltd- Dongre recommends buying Power Finance Corporation (PFC) at ₹452 keeping Stoploss at ₹442 for a target price of ₹468.

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. 468. At present, the stock is maintaining a crucial support level at Rs.442. Given the current market price of ₹452, 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. 468.

5.Samvardhana Motherson International Ltd - Dongre recommends buying Samvardhana Motherson at ₹185 keeping stop loss at ₹180 with a target price of ₹193

On the daily chart of this 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.

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.

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