Today’s stock market: The Nifty 50 and the Sensex, two benchmarks for the Indian stock market, finished the day flat on Tuesday, August 27. The Sensex finished at 81,711.76, up 14 points, while the Nifty 50 gained 7 points to settle at 25,017.75. The BSE Midcap and Smallcap indices both increased by half a percent, in contrast to the considerable advances made by the mid-cap and small-cap sectors.
Wednesday’s trade setup
Rupak De, Senior Technical Analyst at LKP Securities, provided the following analysis of the Nifty’s outlook today: “The Nifty closed with a Doji pattern on the daily chart, which indicates that the sentiment has entered an indecisive phase.” The technical setup is strengthened by the notable presence of put and call option writers near the 25,000 strike price. Because of this, the Nifty 50 is probably going to stay in its current range or perhaps even take a little dive soon. At the other extreme, 24,800 might provide instant support, and a move above 25,100 might drive the Nifty closer to 25,300.
Hrishikesh Yedve who is the AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd says that the Bank Nifty 50 made its opening today and was involved in purchasing. Finally, the Bank Nifty 50 also closed the day with gain at 51,279 points. On a daily basis, there is strength in the formation of the green candle along with the closing of the Index above the trend line of resistance. In addition, the 21-DEMA which is located near the 50,860 levels is being firmly supported by the index. One is expected to buy when there is a dip but this must be done when the index is above 50,860. In the short term 51,800 – 52,000 will work as an upside barrier.
Stocks to purchase right now
Five equities were advised by stock market specialists Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Executive Director at Choice Broking Sumeet Bagadia regarding shares to purchase today.
Today’s stock suggestions from Sumeet Bagadia
1. Godrej Industries: Purchase at ₹1009.6, aim for ₹1064, and halt loss at ₹973
The share price of Godrej Industries is currently at ₹1,009.6. The stock has recently broken the neckline levels of ₹960 and is climbing fast on the upside with significant volume, following a period of minor declines and sideways consolidation. It is anticipated that the price will rise much further, maybe to ₹1,064 levels. Substantial support is visible on the downside close to ₹973.
Additionally, the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are among the important EMAs that Godrej Industries shares are trading above. Strong positive momentum is suggested by this, suggesting that price action may continue to rise. At 76.19, the Relative Strength Index (RSI) confirms an increase in buying activity and indicates an upward trajectory.
In order to mitigate risk, it is recommended to place a stop-loss (SL) around ₹973 to safeguard the investment in the event of an unanticipated market reversal.
In conclusion, Godrej Industries stock seems to offer a good opportunity for investors aiming for a price goal of ₹1,064 given the technical analysis and current market conditions, provided that they take sensible risk management precautions.
2. Buy at ₹2153.35, target ₹2277, stop loss ₹2077 for ICICI Lombard General Insurance Co Ltd
ICICI Lombard General Insurance Company is presently trading close to its all-time high of ₹2,153.35 and is in a long-term uptrend. On the daily chart, the company regularly forms higher highs and higher lows. High trade volumes helped the stock build a powerful bullish candle that suggests the rally will continue. The stock may move further upward toward an upside objective of ₹2,277 if it continues to hold above the ₹2,160 level after bouncing off its support zones.
With a Relative Strength Index (RSI) of 76.54, the stock may potentially rise further because it is not yet in overbought zone. Furthermore, the price of ICICI Lombard shares has lately rebounded from its Exponential Moving Average (EMA) at a short-term (20-day) distance, indicating robust support at these levels.
We advise opening a long position in ICICI Lombard stock at ₹2,153.35 based on these technical indicators. To control risk, place a stop loss at ₹2,077. The target price, which corresponds to the present positive market sentiment, should be ₹2,277.
Stocks of Ganesh Dongre to purchase now
3. NCC Ltd.: Purchase at ₹328, aim for ₹345; halt loss at ₹315
A noteworthy bullish reversal pattern has surfaced in the NCC stock’s recent short-term trend analysis. This technical pattern points to the potential for a brief pullback in the stock price, with a target price of approximately ₹345. The stock is currently holding a critical support level around ₹315. Considering the ₹328 market price right now, a purchasing opportunity is developing. This implies that investors may choose to buy the stock at its current price in anticipation of a gain towards the ₹345 goal.
4.Reliance Industries: Purchase at ₹3002, aim for ₹3060, and halt losses at ₹3950
A breakout at the price level of ₹3,002 has been seen on the Reliance Industries stock daily chart, indicating a possible upward trend. The Relative Strength Index (RSI), which shows growing purchasing enthusiasm, is continuing to rise in tandem with this breakout. With the use of these technical indicators, investors may want to consider purchasing Reliance stock during dips in order to get in at a cheaper price. A stop loss of ₹2,950 is advised in order to reduce risk. In the following weeks, the strategy’s target price of ₹3,060 indicates the possibility of a gain if the Reliance Industries stock keeps rising.
5.Tata Power: Purchase at ₹429, aim for ₹445, and halt loss at ₹420
The Tata Power stock is developing a rounding bottom pattern on the short-term chart, which is a sign of strength. At ₹429, it is currently in price, but this structure suggests an upward trajectory. It is advised to set a stop loss at ₹420 in order to control risk.
In the future weeks, the goal price for this strategy is ₹445. This implies a possible profit as long as the stock maintains its upward trend, supported by bullish technical indicators.
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