Stock market today: Trade setup for Nifty 50 to US dollar; 5 stocks to buy or sell on Tuesday — 7 January 2025

Stock market today: The domestic stock market indices crashed on Monday, January 6, amid heavy sell-off from investors across the board over reports of a new virus outbreak in China. The Nifty 50 index closed 1.62 per cent lower at 23,616.05 points, compared to 24,004.75 points at the previous stock market close.

The BSE Sensex index closed 1.59 per cent lower at 77,964.99 points after Monday’s trading session compared to 79,223.11 points at the previous market close. 

Trade Setup for Monday

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty tanked significantly, losing almost 400 points to end near 23,600 zone with a big bearish candle formation on the daily chart breaking below the important 200 period MA at 23,900 level with bias and sentiment turning very weak.”

“The index is now precariously placed with the near-term support of 23500 level at threat and further having the important and crucial support of 23300 zone which needs to be sustained failing which, can trigger for panic selling among the market players,” said the stock market expert.

“Bank Nifty witnessed heavy profit booking as the day progressed and has breached below the significant support zone of the 200 period MA at 50,700 levels after a very long time weakening the overall bias and has arrived near the important support zone of 49,700 levels where previously, on thrice occasion it had indicated a positive reversal from this zone. A decisive breach below 50,700 zone shall invite for fresh intensified selling pressure with the overall trend turning bearish with 48,500 level positioned as the next important support,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,400 points and resistance at 23,800 points. The Bank Nifty index would have a daily range of 49,300 to 50,400. 

US Dollar

The United States Dollar Index Spot was trading 0.65 per cent lower at 108.244 as of 12:03 p.m. (EST) on Monday, January 6, according to the Bloomberg Dollar Index.

The Dollar index rose 0.9 per cent last week, and fell on Monday after President-elect Donald Trump denied a newspaper report that his incoming administration would likely pursue a less-aggressive tariff policy, reported the news agency Reuters. 

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stock picks for today. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has suggested three stocks for Tuesday.

These include PG Electroplast Ltd., Shaily Engineering Plastics Ltd., Central Depository Services Ltd., RBL Bank Ltd., and Concord Biotech Ltd. 

Sumeet Bagadia stocks to buy today

1. PG Electroplast Ltd. (PGEL): Buy at ₹996.4; Target at ₹1,075; Stop Loss at 965.

PGEL showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹996.4. The stock has been experiencing robust buying interest, the stock has shown consistent higher highs and higher lows, a classic pattern of a strong uptrend. Notably, the trading volume during upward price movements has been substantial, reinforcing the strength of the rally. The recent sessions have seen PGEL stabilizing near its all-time highs, indicating that the stock is consolidating and potentially preparing for another breakout.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock’s positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in PGEL price action.

The trend remains bullish, with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for PGEL Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock. 

2. Shaily Engineering Plastics Ltd. (SHAILY): Buy at ₹1,474.9; Target at ₹1,550; Stop Loss at ₹1,400.

SHAILY showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹1,474.9. The stock has been experiencing robust buying interest, showcases a series of higher highs and higher lows, which is a hallmark of a strong uptrend. The recent surge, accompanied by a significant increase in volume, signals heightened buying interest, potentially from institutional players.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock’s positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in SHAILY price action.

SHAILY remains attractive for momentum investors and traders with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for SHAILY Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock. 

Ganesh Dongre stocks to buy today

3. Central Depository Services Ltd. (CDSL): Buy at ₹1,725; Target at ₹1,760; Stop Loss at ₹1,700. 

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 ₹1,760. At present, the stock is maintaining a crucial support level at Rs. 1700. Given the current market price of ₹1,725, 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 ₹1,760. 

4. RBL Bank Ltd. (RBLBANK): Buy at ₹167; Target at ₹174; Stop Loss at ₹163. 

We have seen a major support in this stock around ₹163. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹167 price level, which may continue its rally till its next resistance level of ₹174 so traders can buy and hold this stock with a stop loss of ₹163 for the target price of ₹174 in the upcoming weeks. 

5. Concord Biotech Ltd. (CONCORDBIO): Buy at ₹2,143; Target at ₹2,200; Stop Loss at ₹2,100. 

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 ₹2,200 Currently, the stock is holding a crucial support level at ₹2,100.

Given this scenario, there is potential for the stock to rebound towards the ₹2,200 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at ₹2,100 to manage risk effectively. The target price for this trade is ₹2,200.

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.