Stock market today: Trade setup for Nifty 50 to US Fed meeting outcome; 5 stocks to buy or sell on Thursday — Dec 19

Stock Market Today: Domestic equity benchmarks Nifty 50 and Sensex extended losses for the third straight session after investors offloaded utility, capital goods and metal stocks amid foreign fund outflows. The benchmarks have lost over two per cent this week, with foreign outflows prompting the Nifty 50 to close below its 50-day moving average for the second straight session on Wednesday.

The 30-share BSE Sensex benchmark tumbled 502.25 points or 0.62 per cent to settle at 80,182.20, taking its downtrend to the third day. During the day, it tanked 634.38 points or 0.78 per cent to 80,050.07. The NSE Nifty 50 index declined 137.15 points or 0.56 per cent to 24,198.85 on December 18.

Trade Setup for Thursday

Nifty witnessed selling pressure during the day, leading to a close below 24,200. “The sentiment appears weak and could worsen if Nifty sustains below 24,200. A decisive fall below 24,200 may trigger a correction towards 23,850 in the short term. On the upside, 24,400 is likely to act as resistance,” said Rupak De, Senior Technical Analyst at LKP Securities

Bank Nifty formed a big red candle on the daily chart, indicating weakness. Furthermore, the index has broken the support of 52,500 and the previous week’s low of 52,265. 52,500 will serve as a strong barrier for the index in the short term.

“On the downside, the index will find strong support around 51,680, where the 100-day exponential moving average (100-DEMA) is placed. If the index remains below 52,500, the bounce should be used for booking profits,” said Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

US Fed meeting outcome

The US Federal Reserve announced its eighth and final monetary policy decision for 2024 after a two-day Federal Open Market Committee (FOMC) meeting and slashed its benchmark interest rate by (25 bps) or a quarter of a percentage point to 4.25-4.50 per cent.

US Fed chair Jerome Powell-led rate-setting panel cut the federal funds rate for the third straight meeting after kicking off its policy easing cycle in September for the first time in four years. New policymaker projections forecast two rate cuts in 2025.

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 Thursday. These include E.I.D. Parry India, Deep Industries, Godrej Industries, Varun Beverages, and Amber Enterprises India.

Sumeet Bagadia stocks to buy today

1. E.I.D. Parry India Ltd. (EIDPARRY): Buy at ₹974; Target at ₹1,030; Stop loss at ₹935.

EIDPARRY showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹974. The stock has been experiencing robust buying interest, leading to consecutive gains that could potentially lead to further upward movement after the recent surge, offering an optimistic outlook for investors

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 EIDPARRY price action.

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

2. Deep Industries Ltd. (DEEPINDS): Buy at ₹611.45; Target at ₹650; Stop loss at ₹588. 

DEEPINDS is exhibiting strong bullish momentum, currently trading at an all-time high of 619.85 levels. The recent breakout above the crucial resistance at 590 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, DEEPINDS is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 70.11 levels.

For traders, keeping an eye on the strong support near 588 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, DEEPINDS current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Ganesh Dongre stocks to buy today

3. Godrej Industries Ltd. (GODREJIND): Buy at ₹1,155; Target at ₹1,195; Stop loss at ₹1,125.

The stock having a substantial support at ₹1,125, marking a crucial juncture in its recent trading. Presently, at ₹1,155, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹1,125. The anticipated target for this trade is ₹1,195, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock’s anticipated rally in the weeks ahead.

4. Varun Beverages Ltd. (VBL): Buy at ₹632; Target at ₹652; Stop loss at ₹623.

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 ₹652. At present, the stock is maintaining a crucial support level at ₹623. Given the current market price of ₹632, 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 ₹652.

5. Amber Enterprises India Ltd. (AMBER): Buy at ₹6,000; Target at ₹6,250; Stop loss at ₹5,850.

On the daily chart of this stock, a breakout at the Rs.6000 price level has been observed, signaling a potential upward trend. Complementing this breakout, the Relative Strength Index (RSI) is still turning up, indicating increasing buying momentum. Given these technical indicators, traders can consider buying on dips, entering the stock at a lower price point. To manage risk, a stop loss at ₹5850 is recommended. The target price for this strategy is Rs.6250 in the upcoming weeks, suggesting a potential gain as the stock continues its upwardtrajectory.

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.