Stock market today: Trade setup for Nifty50, Sensex for today - five stocks to buy or sell on Wednesday

Indian stock market: The frontline indices—the Sensex and the Nifty 50—marginally lower on Tuesday, July 23. The Indian stock market benchmarks dropped nearly 2 per cent during the session in response to Finance Minister Nirmala Sitharaman's budget announcement of increases in the Security Transactions Tax (STT), long-term capital gains tax (LTCG), and short-term capital gains tax (STCG).

After the Finance Minister's announcements regarding capital gains taxes, the Sensex dropped 1,278 points, or 1.6%, to the day's low of 79,224.32. Meanwhile, the Nifty 50 tumbled 435 points, or 1.8%, to the day's low of 24,074.20 during Tuesday's session. The Sensex ended at 80,429.04, down 73.04 points, or 0.091%, and the Nifty closed at 24,479.05, down 30.20, or 0.12%. 

Trade setup for Wednesday

On the outlook of Nifty today, Rupak De, Senior Technical Analyst, LKP Securities, said, "A small-bodied candle has formed on the daily chart following a bearish engulfing pattern, suggesting a pause before the next movement. The Relative Strength Index (14) has entered a bearish crossover and is exiting the overbought zone. The 24,550 level is likely to act as an immediate hurdle for Nifty. A move above 24,550 might induce a meaningful rally in the Nifty, while support is placed at 24,480. A decisive fall below 24,480 might induce selling pressure in the market."

On the outlook of Bank Nifty, De further added, “The index experienced a correction during the day due to weakness in the market. Additionally, the index slipped below the 21-day exponential moving average, indicating a weakening trend. Sentiment might remain weak in the short term or until the index stays below 52,100. On the lower end, it might move towards 51,200–51,000. On the higher end, resistance is placed at 52,100/52,550.”

Buy or sell stock ideas by experts

Regarding stocks to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommend buying these five buy-or-sell stocks: IPCA Laboratories Ltd,  Cochin Shipyard, Max Financial Services, TTK Prestige and Zydus Lifesciences.

Ganesh Dongre's buy or sell stocks

1] IPCA Laboratories Ltd: Buy at ₹1,240 | Target Price: ₹1,280 | Stop Loss: ₹1,210

On the daily chart, the stock has shown a short-term reversal pattern. Specifically, a bullish engulfing pattern has formed, a strong indicator of potential upward movement. This technical pattern is considered bullish, suggesting that the stock may experience a price rise. Given this, traders might consider buying this stock, setting a stop loss at ₹1,210 to manage risk. The target price for this trade is ₹1,280, providing an opportunity for gains as the stock continues to demonstrate bullish behaviour.

2] Cochin Shipyard: Buy at ₹2,600 | Target Price: ₹2,690 | Stop Loss: ₹2,540

In the short-term trend, the stock has seen a bullish reversal pattern, and technically, retrenchment could be possible till ₹2680. So, holding the support level of ₹2,540, this stock can bounce toward the level ₹2,690 in the short term, so the trader can go along with a stop loss of ₹2,540 for the target price of Rs.2690.

3] Max Financial Services Ltd: Buy at ₹1,040 | Target Price: ₹1,080 | Stop Loss: ₹1,010

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 ₹1,080. At present, the stock is maintaining a crucial support level of ₹1,010. Given the current market price of ₹1,041, 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 ₹1,080.

Sumeet Bagadia's stocks to buy today

4] TTK Prestige: Buy at ₹914.8 | Target Price: ₹960 | Stop Loss: ₹880

TTK Prestige is exhibiting strong bullish momentum, currently trading at a 52-week high of 918.1 levels. The recent breakout above the crucial resistance at 900 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, TTK Prestige is trading above key moving averages, including the short-term (20-Day), medium-term (50-Day), and long-term (200-Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 80.76 levels.

For traders, keeping an eye on the strong support near 880 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, TTK Prestige's current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying TTK Prestige at 914.8 with a stop loss of 880 and a target of 960.

5] Zydus Lifesciences: Buy at ₹2,277.15 | Target Price: ₹2,380 | Stop Loss: ₹2,190

ZYDUSWELL daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable 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.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish sentiment signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line, indicating a positive bias. Furthermore, ZYDUSWELL is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying ZYDUSWELL in cash at CMP of 2,277.15 for a target of 2,380 with a stop loss of 2,190.

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.