Stock market today: Trade setup for Nifty 50 to US dollar; 5 stocks to buy or sell on Wednesday — 8 January 2025


Stock market today: The domestic stock markets closed in the green zone due to positive global cues and diminishing concerns about the new HMPV virus after two trading sessions of losses. The Nifty 50 index closed 0.39 per cent higher at 23,707.90 points, compared to 23,616.05 points at the previous market close. 

The BSE Sensex closed 0.30 per cent higher at 78,199.11 points compared to 77,964.99 points at the previous stock market close. 

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Trade Setup for Monday

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty has indicated a pullback after the huge erosion witnessed in the previous session maintaining the 23,500 zone as a strong support area which needs to be sustained.”

“The index has been hovering between a tight range since a long time and would need to breach above the important 200 period MA at 23,900 level and thereafter, to trigger a breakout, would need to cross the resistance barrier of the 50EMA level of 24,180 to establish conviction and anticipate for further rise in the coming days,” said the stock market expert.

“Bank Nifty, once again, has sustained the important support zone of 49,700 levels as of now and would need a decisive close above the significant 200 period MA at 50,700 level to establish some conviction. The overall bias shall improve only after a decisive breach above the 50EMA zone of 51,700 level is confirmed. With the overall bias maintained with a cautiously positive approach, we expect for some revival in the coming sessions and hopefully gain strength for further rise in the coming days,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,550 points and resistance at 23,900 points. The Bank Nifty index would have a daily range of 49,800 to 50,700.

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US Dollar

The United States Dollar Index Spot was trading 0.17 per cent higher at 108.438 as of 11:50 a.m. (EST) on January 7, according to the Bloomberg Dollar Index.

The US Dollar gained on Tuesday after a data release showed that the US economy remained strong at the end of the year 2024, potentially further limiting the scope for a Fed rate cut, reported Reuters.

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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 Wednesday.

These include Max Healthcare Institute Ltd., Bharat Dynamics Ltd., IndusInd Bank Ltd., Garden Reach Shipbuilders & Engineers Ltd., and SBI Cards and Payment Services Ltd.

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Sumeet Bagadia stocks to buy today

1. Max Healthcare Institute Ltd. (MAXHEALTH): Buy at 1,204.95; Target at 1,289; Stop Loss at 1,162.

MAXHEALTH is currently trading at 1,204.95, demonstrating a robust upward trajectory. The stock has consistently formed higher highs and higher lows, highlighting sustained bullish momentum. Recently, it reached a new all-time high of 1,215.55 before undergoing a slight consolidation. Trading above its 20-day, 50-day, and 200-day EMAs, the stock exhibits strong support from both short-term and long-term trends, reinforcing its bullish outlook. With the recent breakout above a key resistance level, MAXHEALTH shows potential for further appreciation. Should the current trend persist and additional resistance levels be surpassed, the stock could potentially target 1,289 in the near term.

On the downside, immediate support is located at 1,182. The Relative Strength Index (RSI) is currently at 62.42. and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at 1,162 is suggested to guard against any unexpected market reversals.

In conclusion, based on the technical analysis and current market conditions, MAXHEALTH presents a promising buying opportunity for those aiming for a 1,289 target, provided that appropriate risk management strategies are in place.

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2. Bharat Dynamics Ltd. (BDL): Buy at 1,184.75; Target at 1,268; Stop Loss at 1,143.

Bharat Dynamics Limited (BDL) is currently trading at 1,184.75, exhibiting a strong uptrend characterized by a higher low pattern, signaling sustained bullish momentum on the weekly timeframe as it approaches its next higher high. The stock recently reversed from a key demand zone around 1,100, reinforcing buyer interest at lower levels. A breakout above 1,200 is anticipated, which could enhance market sentiment and favor buyers, potentially driving the stock towards its short-term target of 1,268, continuing its upward trajectory.

BDL is trading well above its 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), further validating the prevailing bullish trend. Additionally, the Relative Strength Index (RSI) stands at 50.46 and is trending upward, indicating strengthening buying momentum. On the downside, immediate support is observed at 1,150, offering a cushion against potential pullbacks.

To manage risk effectively, a stop-loss at 1,143 is recommended to safeguard against unfavorable market reversals. Given the robust technical setup and current market conditions, BDL presents a compelling buying opportunity with a target of 1,268, provided that appropriate risk management strategies are implemented. 

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Ganesh Dongre stocks to buy today

3. IndusInd Bank Ltd. (INDUSINDBK): Buy at 985; Target at 1,010; Stop Loss at 970.

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 1,010. At present, the stock is maintaining a crucial support level at 970. Given the current market price of 985, 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 1,010.

4. Garden Reach Shipbuilders & Engineers Ltd. (GRSE): Buy at 1,575; Target at 1,620; Stop Loss at 1,540.

We have seen a major support in this stock around 1,540 So, at the current juncture, the stock has again seen a reversal price action formation at the 1,575 price level, which may continue its rally till its next resistance level of 1,620 so traders can buy and hold this stock with a stop loss of 1,540 for the target price of 1,620 in the upcoming weeks.

5. SBI Cards and Payment Services Ltd. (SBICARD): Buy at 732; Target at 750; Stop Loss at 720.

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 750 Currently, the stock is holding a crucial support level at 720.

Given this scenario, there is potential for the stock to rebound towards the 750 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at 720 to manage risk effectively. The target price for this tradeisRs 750.

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.

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