Stock market news: The Indian stock market wrapped up lower on Monday. The Sensex dropped 331 points, and the Nifty 50 finished at 25,959, down by 108 points. Most sectors experienced weakness, particularly real estate, metals, and capital goods, while IT stocks remained stable.
Despite the market’s decline, it is still near all-time highs, indicating that the drop is primarily a result of profit-taking and caution, according to experts.
Market outlook and key drivers
Vinod Nair, Head of Research at Geojit Investments, noted that after a positive trading session within a constrained range, the market experienced a decline in the final half-hour, primarily due to Monday’s expiry, as the Nifty 50 indices struggled to stay above the crucial level of 26,000.
“Investor sentiment remained cautious ahead of significant event risks, including potential delays in concluding the interim trade agreement between the US and India. However, selective purchasing in IT stocks provided some support. On a positive note, global markets are showing optimism, driven by renewed hopes for a rate cut by the Fed in December, spurred by concerns regarding U.S. employment data,” said Nair.
According to Abhinav Tiwari, a Research Analyst at Bonanza, in the future, markets will be influenced by global developments and updates from central banks. There may be sustained volatility, and short-term pullbacks could occur.
Trade Setup for Tuesday
Vatsal Bhuva, a Technical Analyst at LKP Securities, noted that the index has finished below its 50 EMA on the hourly chart and has fallen beneath the significant 26,000 support near its 10-day EMA, creating a bearish candlestick and indicating short-term weakness.
“If the index opens or closes beneath the 10-day EMA at 25,950, a further decline is probable, which could lead it towards the 20-day EMA situated at 25,850 levels. The support level for the index is at 25,850, and it is wise to adopt a cautious approach if it drops below this threshold, with resistance holding at 26,100,” said Bhuva.
Stocks to buy today
Market experts recommended eight intraday stocks. The experts include Sumeet Bagadia (Choice Broking), Ganesh Dongre (Anand Rathi), and Shiju Koothupalakkal (Prabhudas Lilladher).
Sumeet Bagadia’s stock picks
Federal Bank Ltd: Bagadia recommends buying Federal Bank shares at ₹248, with a stop-loss at ₹239, and a target share price of ₹266.
Sumeet Bagadia said that the Federal Bank share price is currently trading at 248, maintaining a strong upward trajectory. The stock has consistently formed higher highs and higher lows, reflecting sustained bullish momentum. It recently reached its all-time high of 251.2. A breakout above this level could further accelerate buying interest. The Exponential Moving Averages (EMAs) for the 20, 50, 100, and 200-day periods are all trending upwards, reinforcing the bullish outlook. The price is trading above all major EMAs, indicating strong positive sentiment and continued strength in the stock, according to Bagadia.
Sumeet believes that if Federal Bank share price manages to close above its higher level, it could gain further traction toward a short-term target of 266. Traders should monitor price action around this resistance zone for confirmation of a breakout.
“In conclusion, based on the technical analysis and current market conditions, Federal Bank share price presents a promising buying opportunity for those aiming for a 266 target, provided that appropriate risk management strategies are in place,” said Sumeet.
Tech Mahindra Ltd: Bagadia recommends buying Tech Mahindra shares at ₹1,495, with a stop-loss at ₹1,443, and a target share price of ₹1,600.
Sumeet Bagadia said that Tech Mahindra share price is currently trading near 1,495, showing signs of trend reversal series of lower highs and lower lows. Recently, the stock formed a double-bottom pattern, a bullish reversal structure, supported by a bullish RSI divergence, indicating end downside momentum and rising buying interest at lower levels.
According to Bagadia, over the past few sessions, Tech Mahindra share price has moved upward from its double bottom formation, and the daily candle has broken above the top of the double-bottom pattern, signalling a shift in momentum toward the upside. This breakout ensures the possibility of a sustainable bullish move, suggesting that the stock may be enter the phase of a trend reversal.
“Can consider buying Tech Mahindra share price at current levels of 1,495 with a stop loss at 1,443. On the upside, a sustained continuation of the breakout could push the stock toward the 1,600 mark, supported by bullish sentiment and pattern confirmation,” said Bagadia.
Ganesh Dongre’s stocks to buy today
KEI Industries Ltd: Ganesh Dongre recommends buying KEI Industries shares at ₹4,108 with a stop loss at ₹4,050, with an KEI Industries share price target of ₹4,200.
According to Ganesh Dongre, 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 ₹4,200. At present, the stock is maintaining a crucial support level at ₹4,050.
“Given the current market price of ₹4,108, 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 ₹4,200,” said Dongre.
Astra Microwave Products Ltd: Ganesh Dongre recommends buying Astra Microwave shares at ₹940 with a stop loss at ₹920, with an Astra Microwave share price target of ₹990.
Ganesh Dongre said that we have seen a major support in this stock around Rs. 920 So, at the current juncture, the stock has again seen a reversal price action formation at the ₹940 price level, which may continue its rally till its next resistance level of ₹990 so traders can buy and hold this stock with a stop loss of ₹920 for the target price of ₹990 in the upcoming weeks.
Astral Ltd: Ganesh Dongre recommends buying Astral shares at ₹1,470 with a stop loss at ₹1,420, with an Astral share price target of ₹1,530.
Ganesh Dongre said that in the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests that there could be a temporary retracement in the stock’s price, possibly to around ₹1,530 Currently, the stock is holding a crucial support level at ₹1,420.
“Given this scenario, there is potential for the stock to rebound towards the ₹1,530 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at ₹1420 to manage risk effectively. The target price for this trade is ₹1530, reflecting the anticipated upward movement based on the identified technical,” said Dongre.
Shiju Koothupalakkal intraday stocks for today
TD Power Systems Ltd: Shiju Koothupalakkal recommends buying TD Power shares at ₹762 with a target price of ₹805 and a stop-loss of ₹744.
According to Shiju Koothupalakkal, the stock has recently indicated a strong run up and currently after a short period of correction has once again shown signs of taking support near the 710 zone with a pullback with significant volume participation visible to improve the bias.
“The RSI has cooled off from the overbought zone and is currently well placed to indicate a revival and expecting for further upward move in the coming sessions. With the chart technically looking good, we suggest buying the stock for an upside target of 805 keeping the stop loss of 744 level,” said Koothupalakkal.
NOCIL Ltd: Shiju Koothupalakkal recommends buying NOCIL shares at ₹174.85 with a target price of ₹182 and a stop-loss of ₹171.
Shiju Koothupalakkal said that the stock has witnessed a decent revival from the support zone at 168 level with a positive candle formation on the daily chart to improve the bias and expect for further rise in the coming sessions.
“The RSI is well placed and has indicated a positive trend reversal to signal a buy with much upside potential visible and can expect for further gains. With the chart technically looking good, we suggest buying the stock for an upside target of 182 keeping the stop loss of 171 level,” said Koothupalakkal.
Sundram Fasteners Ltd: Shiju Koothupalakkal recommends buying Sundram Fasteners shares at ₹987 with a target price of ₹1,040 and a stop-loss of ₹965.
Shiju Koothupalakkal said that the stock having taking support near the 925 zone has indicated a bullish candle pattern with significant volume participation visible to improve the bias and anticipate for further rise in the coming sessions.
“The RSI has been consolidating with currently the bias getting better with indications of positive movement anticipated in the coming sessions. With the chart technically looking good, we suggest buying the stock for an upside target of 1040 keeping the stop loss of 965 level,” said Koothupalakkal.
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 making any investment decisions.