Stock market today: Trade setup for Nifty 50 to Sensex, five stocks to buy or sell on Wednesday — August 14

Stock market today: Indian markets declined by approximately 1 percent, with the Sensex closing below the 79,000 level and the Nifty falling below 24,200, on Tuesday, August 12. This drop was largely due to a broad sell-off, especially in banking, metals, and auto stocks. Additionally, continued foreign fund outflows and mixed global market trends further dampened sentiment in domestic equities.

Trade setup for Wednesday

On the outlook for Nifty today, Rupak De, Senior Technical Analyst, LKP Securities, said, “Bears have returned to the market as the index repeatedly failed to break above the 21 EMA. The near-term trend appears negative. On the upside, 24,250 now serves as a new resistance level, and as long as Nifty remains below 24,250, the strategy should be to sell on rallies. On the downside, initial support is around 24,000; if the index falls below this level, it may decline further towards 23,700.”

On the overall market outlook, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said, “Nifty, after a lacklustre start, came under pressure and closed with a loss of 208 points at 24,139 levels. The broader market, too, saw a sell-off and was down 1%. Barring healthcare and consumer durables, all sectors ended in red. Domestic equities succumbed to global headwinds surrounding geopolitical uncertainty and cautiousness ahead of US inflation data. Healthy macro data back home failed to provide much-needed support. We expect the market to continue its consolidation mode due to lack of any major positive trigger. However, investors should use this dip as a buying opportunity in quality stocks, especially large-caps, where valuations are still comfortable.”

Stocks to buy today

Regarding intraday stocks for today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended these five buy or sell stocks: ICICI Securities, Fortis Healthcare, Power Grid Corporation of India, HCL Technologies and Tata Power.

Sumeet Bagadia's stock recommendations 

1] ICICI Securities: Buy at ₹785.9, target ₹850, stop loss ₹755

ISEC is currently priced at 785.9 in the cash market, presenting a promising buying opportunity. On the daily chart, the stock appears to be on the verge of breaking out of a consolidation range. Strong trading volumes have supported the price, indicating strength in the move. If the price sustains above 790, it will likely advance towards a target of 850. On the downside, 755 will serve as immediate support.

The Relative Strength Index (RSI) is at 61.63 levels and trending upward, indicating an increase in buying momentum. Additionally, ISEC has rebounded from its key moving averages, including short-term (20-day) EMA and medium-term (50-day) EMA levels, signalling a bullish outlook.

Based on these technical indicators, we recommend taking a long position in ISEC at 785.9, with a stop loss at 755 to manage risk, and a target price of 850, aligning with the current favorable market sentiment.

2] Fortis Healthcare: Buy at ₹517.1, target ₹560, stop loss ₹497

Fortis is currently in an upward trend, forming higher highs and higher lows on the daily chart. The stock is trading within a rising parallel channel and is consolidating near its historical peaks. It is showing signs of attempting to break through higher levels, supported by robust trading volumes reflecting the trend's strength. If Fortis surpasses the 530 mark, it could potentially advance towards a target of 560.

The Relative Strength Index (RSI) is currently at 64.48, with a positive crossover, indicating an increase in buying momentum. Additionally, Fortis has found support near its key moving averages, including the short-term (20-day) EMA and the medium-term (50-day) EMA, which supports the bullish trajectory.

In summary, based on the technical setup and indicators (RSI and moving averages), buying FORTIS at 517.1 levels with a stop-loss at 497 and a target price of 560, presents a compelling opportunity for potential gains.

Ganesh Dongre's buy or sell stocks

3] Power Grid Corporation of India: Buy at ₹337, target ₹350, stop loss ₹330

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. 350. The stock is currently maintaining a crucial support level at Rs.330. A buying opportunity is emerging, given the current market price of Rs.337. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 350.

4] HCL Technologies: Buy at ₹1,592, target ₹1,635, stop loss ₹1,575

On the daily chart of this stock, a breakout at the Rs. 1,592 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. 1,575 is recommended. The target price for this strategy is Rs. 1,635 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Tata Power: Buy at ₹408, target ₹430, stop loss ₹400

On the short-term chart, this stock is forming a rounding bottom pattern, which is inherently bullish. Currently priced at Rs. 408, this formation signals a potential upward trend. To effectively manage risk, a stop loss at Rs. 400 is recommended. .

The target price for this strategy is Rs. 430 in the upcoming weeks. This suggests a potential gain as the stock continues its upward trajectory, backed by the bullish technical signals.

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