Nifty 50 Trade Setup & 5 Stocks to Buy or Sell – October 11 Market Insights

Stock Market Overview: The Nifty 50 index remained in a consolidation phase yesterday, closing at 24,998.45, reflecting a slight gain of 0.07%. Similarly, the S&P BSE Sensex recorded a modest increase of 0.18%, finishing at 81,611.41.

The Bank Nifty demonstrated a more robust performance, climbing by 1.07% to reach 51,530.90, bolstered by gains in the metal and energy sectors. However, the Pharma and IT sectors experienced significant declines during the trading session. Overall, broader market indices struggled to maintain early momentum and concluded the day with mixed results.

Trade Setup for the Coming Days

Market analysts suggest that the current market environment is largely non-directional. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, crucial breakout levels are identified at 25,130 for the Nifty and 82,000 for the Sensex. If these levels are crossed, traders could anticipate a potential bounce back to 25,260-25,300 for the Nifty and 82,300-82,500 for the Sensex.

Additionally, the Bank Nifty has recently seen a pullback towards the key hourly moving averages around the 51,700 – 51,800 zone. Jatin Gedia, Technical Research Analyst at Sharekhan, expects this pullback to persist upwards towards the 52,000 – 52,400 range.

Global Market Context Amidst Geopolitical Tensions

In the backdrop of ongoing geopolitical tensions, notably the Iran-Israel conflict, Asian equities largely rose on Thursday following earlier gains in U.S. stocks. Conversely, European markets saw a downturn, primarily driven by losses in technology and mining sectors, as investors awaited critical U.S. inflation data. This economic indicator, along with Initial Jobless Claims figures, is anticipated to influence the Federal Reserve’s decisions regarding future monetary policy adjustments.

Siddhartha Khemka, Head of Research at Wealth Management, anticipates a period of market consolidation within a specified range, with stock-specific movements becoming prominent. With TCS set to release its Q2 results later today, the IT sector is poised to be in the spotlight as its performance could set the tone for other companies within the industry.

Recommended Stocks for Today’s Trading Session

Sumeet Bagadia, Executive Director at Choice Broking, has identified specific stock picks for today. Additionally, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has also suggested his own selections.

Sumeet Bagadia’s Stock Recommendations

1. Apar Industries Ltd – Bagadia suggests buying Apar Industries at ₹10,649.7 with a stop loss at ₹10,250 and a target price of ₹11,350. Recent trading indicates that Apar Industries is in an upward trend, having recorded a series of higher highs and higher lows. The stock recently reached an all-time high of 10,720, supported by significant volume. A close above the resistance level of 10,700 may drive it towards a target of 11,350.

2. Gujarat Fluorochemicals Ltd – Bagadia recommends purchasing Gujarat Fluorochemicals at ₹4,659.75 with a stop loss at ₹4,488 and a target price of ₹4,900. The stock currently shows bullish momentum, with a strong support line at 4,488, emphasizing its stability and resilience amid market fluctuations.

Ganesh Dongre’s Stock Picks

3. Clean Science and Technology Ltd – Dongre recommends buying Clean Science and Technology at ₹1,520, with a stop loss at ₹1,485, targeting ₹1,595. The stock shows strong support at 1,485 and appears to be in an upward trajectory, indicating potential for continued gains.

4. GAIL (India) Ltd – Dongre also suggests buying GAIL at ₹226, with a stop loss at ₹218, and a target of ₹235. Recent price action indicates a bullish reversal pattern, suggesting upward movement is likely towards the target price.

5. Mahindra & Mahindra Ltd – Lastly, Dongre recommends Mahindra & Mahindra at ₹3,200, with a stop loss at ₹3,140, and a target price of ₹3,330. A breakout at the ₹3,200 mark indicates potential for upward growth, supported by increasing buying momentum as illustrated by the Relative Strength Index (RSI).

Disclaimer: The views and recommendations detailed above reflect the opinions of individual analysts or brokerage firms, and do not necessarily align with Mint’s perspectives. Investors are urged to seek advice from qualified experts prior to making any investment decisions.