Stock market today: Trade strategy for Nifty 50 to US Fed rate cut, five stocks to buy or sell on Raksha Bandhan

Stock market today: Following strong global market sentiments, the Indian stock market ended higher on Friday as ease in the US recession fear renewed the US Fed rate cut buzz. The Nifty 50 index finished 396 points north at the 24,540 mark, the BSE Sensex shot up 1,330 points and closed at 80,436, while the Bank Nifty index gained 788 points and ended at 50,515. In the broad market, the BSE Small-cap index skyrocketed 1.70 per cent, whereas the Mid-cap index shot up 1.80 per cent during Friday deals. All sectors ended in green, with IT and realty being the top gainers with over 2 per cent intraday gains.

Trade setup for Monday

On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The recent downside breakout seems to have resulted in a false breakout, and that has turned into a sharp upside bounce on Friday. The next upside is around 24,700, and the then 25,000 for the near term. Immediate support is at 24,350."

On the outlook for Bank Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty index also opened with a gap up and, after some initial volatility, experienced strong buying interest, closing positively at 50,517. Technically, it formed a green candle on the daily chart, indicating strength. However, the index may encounter resistance near 50,805, where the 21-DEMA is positioned. A sustained move above 50,810 could drive the index toward the 51,200-51,500 range."

US Fed rate cut in focus

"Investors are expected to remain vigilant about the US Fed news regarding the Jackson Hole Symposium beginning on Thursday this week. So, I am expecting a range-bound movement on Dalal Street. However, overall Indian stock market trend is positive. Hence, I suggest investors maintain a buy-on-dips strategy till the US Fed minutes become public this week," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Stocks to buy today

Regarding shares to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Gamnesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended five buy or sell stocks for intraday trading.

Sumeet Bagadia's stock recommendations for today

1] Colgate Palmolive or COLPAL: Buy at ₹3534.65, target ₹3710, stop loss ₹3415.

COLPAL is exhibiting bullish solid momentum, trading at an all-time high of ₹3540.85. The recent breakout above the crucial resistance at ₹3424 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.

2] Coromandel International: Buy at ₹1759.75, target ₹1845, stop loss ₹1695.

COROMANDEL is currently trading at ₹1759.75. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹1699 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹1845 levels. On the downside, considerable support is evident near ₹1695.

Ganesh Dongre's shares to buy today

3] Bata India: Buy at ₹1420, target ₹1460, stop loss ₹1400.

A notable bullish reversal pattern has emerged in the stock's recent short-term trend analysis. This technical pattern suggests a temporary retracement in the stock's price, potentially reaching around ₹1460. The stock is currently maintaining a crucial support level at ₹1400. Given the current market price of ₹1420, a buying opportunity is emerging. This suggests that investors consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹1460.

4] BPCL: Buy at ₹333, target ₹342, stop loss ₹326.

On the daily chart of this stock, a breakout at the ₹333 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 ₹326 is recommended. The target price for this strategy is ₹342 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5] Hindustan Unilever Ltd or HUL: Buy at ₹2755, target ₹2800, stop loss ₹2700.

On the short-term chart, this stock is forming an inherently bullish rounding bottom pattern. Currently priced at ₹2755, this formation signals a potential upward trend. To effectively manage risk, a stop loss at ₹2700 is recommended.

The target price for this strategy is ₹2800 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.