Oct 8 Stock Market: Nifty 50 Trade Setup & 5 Stocks to Buy/Sell Amid Iran-Israel Conflict

Stock Market Update: The Indian stock market experienced a challenging trading session on Monday, with the Benchmark Nifty-50 Index settling at 24,795.75, representing a decline of 0.87%. Similarly, the S&P BSE Sensex closed at 81,050.00, down 0.78%. Most sectors faced adversity, except for the IT Index, with Mid and Small-cap indexes witnessing sharper declines of around 2.5%. The Bank Nifty Index also encountered a significant correction, closing at 50,478.90, down 1.91%.

Trade Setup for Tuesday

The Nifty’s underlying trend continues to indicate a bearish sentiment. Following its recent drop below the crucial support levels of 25,100-25,000, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that the index might slide further down towards the next key support zone around 24,500-24,400 in the near term. Traders should remain cautious as this trend suggests possible continued weakness.

Meanwhile, the Nifty Bank index has experienced a concerning short-term trend line breakdown, closing below the 100-day simple moving average (DSMA) support. This technical pattern indicates a potential for further downward movement. Immediate resistance is identified in the range of 51,000–51,100, while the psychological level of 50,000 is expected to act as strong support, according to Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

Global Market Dynamics amid Geopolitical Tensions

Asian markets generally showed an upward movement on Monday, buoyed by robust US jobs data, while European markets reflected mixed sentiments. Unfortunately, this positive news regarding US jobs did not significantly uplift investor sentiment in India, demonstrating the complex interplay of global dynamics on local markets.

In addition to domestic market pressures, geopolitical factors are significantly influencing short-term trends in the Indian market. The escalating tensions resulting from the ongoing conflict between Iran and Israel have instilled a heightened level of uncertainty, making it challenging for investors to navigate this turbulent environment, as highlighted by Narendra Solanki, Head of Fundamental Research—Investment Services at Anand Rathi Shares and Stock Brokers.

Recommended Stocks for Trading Today

Sumeet Bagadia, Executive Director at Choice Broking, has identified two stock picks for Monday. Additionally, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has suggested three notable stock ideas for the day.

The recommended stocks include Gillette India Ltd, R R Kabel Ltd, Infosys Ltd, Apollo Hospitals Enterprise Ltd, and Mahindra & Mahindra Ltd. Investors are encouraged to consider these stocks carefully as part of their trading strategy.

Sumeet Bagadia’s Stock Recommendations

1. Gillette India Ltd – Sumeet Bagadia advises buying Gillette India at ₹8,683.95, with a Stoploss set at ₹8,423 and a target price of ₹9,205.

This stock is currently trading at ₹8,683.95, having formed a neutral candlestick pattern on the daily chart, which indicates a potential bullish reversal from key support levels. Its recent bounce from the support zone is promising, bolstered by increased trading volumes, suggesting a solid bullish outlook. Should Gillette manage to maintain levels above ₹8,700, it may continue its ascent toward the target price of ₹9,205.

2. R R Kabel Ltd – Bagadia recommends buying R R Kabel at ₹1,772.30, with a Stoploss at ₹1,719 and a target price of ₹1,878.

RR Kabel Ltd has demonstrated a bullish trend, showing significant movement after bouncing from its support zone and breaking out of a consolidation range. This breakout is backed by substantial trading volume, indicating strong buyer interest. Given its current technical structure, RR Kabel is well-positioned to potentially reach the target price of ₹1,878 in the near term.

Ganesh Dongre’s Stock Recommendations

3. Infosys Ltd – Dongre recommends buying Infosys at ₹1,930, setting a Stoploss at ₹1,880 with a target price of ₹2,030.

A recent analysis reveals a notable bullish reversal pattern forming in Infosys, suggesting a potential retracement in price up to around ₹2,030. The current price at ₹1,930 indicates a favorable buying opportunity, especially as the stock maintains crucial support at ₹1,880.

4. Apollo Hospitals Enterprise Ltd – Dongre suggests buying Apollo Hospitals at ₹6,773, with a Stoploss at ₹6,700 and a target price of ₹6,950.

The daily chart indicates solid support at ₹6,700, pointing to a potential for an upward trend. The Relative Strength Index (RSI) is increasing, reflecting growing buying momentum. Traders are encouraged to consider buying on dips while managing risk effectively with a stop loss at ₹6,700, targeting ₹6,950 in upcoming weeks for a potential gain from this upward trajectory.

5. Mahindra & Mahindra Ltd – Dongre recommends buying M&M at ₹3,060, with a Stop Loss at ₹3,000 and a target price of ₹3,140.

The short-term charts for M&M illustrated a bullish engulfing pattern, signaling strong upward potential. Currently priced at ₹3,060, this pattern suggests a possible bullish trend. A stop loss at ₹3,000 is advisable for risk management, with a target price of ₹3,140 indicated for the forthcoming weeks, anticipating a solid gain based on favorable technical signals.

Disclaimer: The views and recommendations provided above are solely those of individual analysts or broking firms and do not reflect the opinions of Mint. Investors are encouraged to seek advice from certified financial advisors before making any investment decisions.