Stock market today: Trade setup for Nifty 50 to global outlook amid Iran-Israel war; five stocks to buy or sell on Oct 3

Stock Market Today:  The market on Tuesday traded in narrow range and ended flat, after a sharp decline on Monday. The benchmark Nifty-50 index ended at 25,796.90  marginally (0.05%) lower. The S&P BSE Sensex at 84,266.29 also ended 0.04% lower. Sector-wise, trend remained mixed with IT and Media sectors edging higher supported by gains in Metals and Auto. Energy sector nevertheless ended in the red. Bank Nifty at 52,922.60 also ended 0.10% lower on Tuesday and Wednesday happened to be a market holiday.

Trade setup for Thursday

As per Shrikant Chouhan, Head of Equity Research, Kotak Securities,  25910 for Nifty and 84650 for Sensex would be the trend decider level for the bulls. On the down side, the market could retest the level of 25680-25650/84000-83700. The current market texture is non-directional hence level based trading would be the ideal strategy for the day traders, said Chouhan

After the sharp decline in the last three trading sessions, Jatin Gedia – Technical Research Analyst at Sharekhan expects a pullback as the hourly momentum setup is pointing towards a counter trend pullback towards 53400 – 53500. Ideally counter trend pullbacks towards resistance zone 53400 – 53600 should be used as a selling opportunity as per Gedia

Global Markets Outlook

Middle East tension kept risk sentiment in check as Asian equities withdrew on Tuesday and Wednesday from two-and-a-half-year highs. The China , Hong Kong and India markets were closed on Wednesday. European markets also remained rangebound and mixed bag performance was seen by key indices.

Global cues are mixed amid a weak outlook from European Auto OEMs and US Fed Chair commentary on the pace of future rate cuts said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd. He expect the market to consolidate with stock-specific action as we enter into results and in the near term, investors taking cues from US Job Jolts and manufacturing data.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking has recommended two stock picks for Tuesday. Also, Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi has given another three stock picks for today.

These include Dr. Lal PathLabs Ltd, Tata Chemicals Ltd , Rashtriya Chemicals & Fertilizers Ltd , Sonata SoftwareE Ltd and Oil and Natural Gas Corporation Ltd 

Sumeet Bagadia's stocks to buy today

1.Dr. Lal PathLabs Ltd- Sumeet Bagadia recommends buying Dr. Lal PathLabs at ₹3415.65 with stop Loss at ₹3313  for a target price of ₹3620

Dr. Lal PathLabs is currently trading at ₹3415.65, having consistently formed higher highs and higher lows over the past few months. This trend is supported by a strong bullish candle on the daily chart, indicating a sustained bullish momentum. After a brief pullback following an impulsive move, the stock has bounced back, signaling a reversal pattern backed by rising trading volumes, which reflects renewed buying interest. If Dr. Lal PathLabs holds above the critical level of ₹3460, it is likely to extend its upward movement toward the target of ₹3620.

2. Tata Chemicals Ltd-   Sumeet Bagadia recommends buying Tata Chemicals Ltd at ₹1132.6 with Stoploss at ₹1098 for a target price of ₹1201

Tata Chemicals is currently trading near ₹1132.6, having formed a strong bullish candle, indicating a continuation of upward momentum. The stock recently broke out of a falling parallel channel pattern on the daily chart, with a significant rise in trading volumes, highlighting robust buying interest. If Tata Chemicals manages to sustain above the ₹1140 level, it is poised to move higher, potentially reaching the target price of ₹1201

Ganesh Dongre's stocks to buy today

3.Rashtriya Chemicals & Fertilizers Ltd - Dongre recommends buying Rashtriya Chemicals & Fertilizers Ltd at ₹187 with Stoploss of ₹180 and a Target price of ₹196

Rashtriya Chemicals & Fertilizers stock found a substantial support level at Rs.180, marking a crucial juncture in its recent trading. Presently, at Rs.187, 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 Rs.180. The anticipated target for this trade is Rs.196, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead..

4. Sonata Software Ltd - Dongre recommends buying Sonata Software LTD at ₹632 with Stop loss at ₹620 for a target price of ₹650.

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. 650. At present, the stock is maintaining a crucial support level at Rs.620. Given the current market price of Rs.630, 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. 650.

5. Oil and Natural Gas Corporation Ltd- Dongre recommends buying Oil and Natural Gas Corporation (ONGC) at ₹292 with a stop loss at ₹287 for a target price of ₹305

On the daily chart of this stock, a breakout at the Rs. 292 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. 287 is recommended. The target price for this strategy is Rs. 305 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