Thursday Trade Setup: Top 5 Stocks to Buy or Sell Today Featuring Bitcoin (BTC) Insights

• Stock market today: On account of weak global cues due to heightened tensions in the Middle East, the stock market ended lower for the fourth straight session.
• The Nifty 50 index lost 183 points and closed at 22,704, the BSE Sensex finished 667 points lower at 74,502 whereas the Bank Nifty index crashed 640 points and ended at 48,501. Cash volumes on the NSE were flat at Rs.1.03 lakh crore.
• The broad market indices fell less than the Nifty even as the advance-decline ratio improved to 0.74:1.

Get the latest insights on the stock market’s performance amidst global tensions and expert recommendations for trading strategies.

Trade Setup for Thursday

On the outlook for Nifty today, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, “The domestic benchmark indices opened on a weaker note, weighed down by weak global cues, and as a result, Nifty settled the day on a negative note at 22,705 levels. Technically, the index confirmed a dark cloud cover candlestick pattern and witnessed profit booking. On the downside, the 21-DEMA is near 22,567, and the 34-DEMA is near 22,480. Thus, 22,567 and 22,480 will serve as support points for the index, while 22,800 and 23,110 will act as a major hurdle in the short term.”

Bank Nifty Outlook

On the outlook for Bank Nifty today, Om Mehra, Technical Analyst at SAMCO Securities, said, “Bank Nifty ended today’s session at 48,501.35, down 1.30%. The bearish candle with a long tail indicates rejections in reaching the 49,000 level in Bank Nifty. The index is hovering near the 20 DMA (Daily Moving Average), and if it falls below 48,380, it could potentially push towards the 48,000 mark. Resistance is currently expected around the 49,000 level. In the broader context, a double-top formation is seen on the daily chart, generally indicating a reversal signal of bullish trend.”

Volatility and Strategy

Unveiling strategy for the Indian market today, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, “The volatility is expected to heighten in coming sessions. Thus, traders should stay on the sidelines and not get too aggressive. The weak global cues are further adding to the nervousness, and thus markets will likely remain weak soon.”

Speaking on the rising India VIX Index, Sumeet Bagadia, Executive Director at Choice Broking, said, “The India VIX Index has breached the immediate hurdle placed at 23, and the volatility index is now facing the hurdle at 25. On breaching this resistance on a closing basis, we can expect more volatility in the Indian stock market as the index may touch the 28 mark in the near term.”

Expert Stock Recommendations

Regarding stocks to buy today, stock market experts Sumeet Bagadia of Choice Broking and Ganesh Dongre, Senior Manager—Technical Research at Anand Rathi—recommend buying these five buy-or-sell stocks today: Bajaj Auto, Zydus Wellness, Bharat Forge, Oberoi Realty, and Divi’s Laboratories.

Sumeet Bagadia’s Stocks to Buy Today

1] Bajaj Auto: Buy at ₹9070, target ₹9450, stop loss ₹8850.

Bajaj Auto share presents a compelling technical picture. Notably, it holds a robust support level at ₹6850, just below its 20-day EMA levels, signifying historical strength and the potential to attract buyers, indicating short-term bullish sentiment. The daily chart reveals a robust bullish pattern, suggesting an uptrend. The Relative Strength Index (RSI) comfortably trading near 57.95 further supports the case for strength, as it indicates that the stock is not overbought, leaving room for potential gains.

2] Zydus Wellness: Buy at ₹1801.45, target ₹1900, stop loss ₹1740.

Zydus Wellness shares’ daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company’s recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Ganesh Dongre’s Buy or Sell Stocks

3] Bharat Forge: Buy at ₹1570, target ₹1620, stop loss ₹1540.

We have seen major support in this stock at around ₹1540. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹1570 price level, which may continue its rally till its next resistance level of ₹1620. So traders can buy and hold this stock with a stop loss of ₹1540 for the target price of ₹1620 in the near term.

4] Oberoi Realty: Buy at ₹1835, target ₹1870, stop loss ₹1810.

In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹1870. So, holding the support level of ₹1810, this stock can bounce toward ₹1870 in the short term. Hence, the trader can go along with a stop loss of ₹1810 for the target price of ₹1870.

5] Divi’s Lab: Buy at ₹4450, target ₹4530, stop loss ₹4380.

We have seen significant support for this stock at around ₹4380. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹4450 price level, which may continue its rally till its next resistance level of ₹4530. So traders can buy and hold this stock with a stop loss of ₹4380 for the target price of ₹4530 in the near term.

Conclusion

The stock market continues to face downward pressure due to weak global cues and heightened tensions in the Middle East. Key indices like Nifty 50 and Bank Nifty have shown significant declines, with technical indicators suggesting potential support and resistance levels. Experts recommend a cautious approach, highlighting specific stocks with promising technical setups for short-term gains. As volatility is expected to remain high, traders are advised to stay informed and consider expert recommendations to navigate the current market conditions effectively.