Stock Market Update: Trade Setup for Nifty 50 and Global Markets, Five Stocks to Consider Buying or Selling on Wednesday, September 4

Stocks to Buy Today: Experts have recommended five shares to consider — Kajaria Ceramics, ICICI Bank, Zomato, JK Lakshmi Cement, and Finolex Cables.

Stock Market Update: On Tuesday, the frontline indices—the Sensex and Nifty 50—closed the day with minimal changes. The Sensex opened at 82,652.69, slightly above its previous close of 82,559.84, fluctuated within a narrow range of around 274 points, and ended 4 points lower at 82,555.44. Meanwhile, the Nifty 50 started at 25,313.40, just above its prior close of 25,278.70, reached an intraday high of 25,321.70 and a low of 25,235.80, and finished the day up by 1 point at 25,279.85.

Trade Setup for Tuesday:

Rupak De, Senior Technical Analyst at LKP Securities, commented on the Nifty outlook, stating, “Nifty remained rangebound, marking its 14th consecutive positive close. It faced resistance at 25,300, indicating significant call option writing at that level. Looking ahead, a decisive move above 25,300 could potentially spark a rally toward 25,500. On the downside, support is seen at 25,200 and 25,000.”

Bank Nifty Outlook:

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, shared his perspective on the Bank Nifty, stating, “The Bank Nifty started the day on a strong note but faced profit booking in the first half. However, the index saw strong buying interest in the second half, closing positively at 51,689 levels. Technically, the daily chart shows a green candle with a long lower shadow, indicating strength. The 21-Day Exponential Moving Average (DEMA) is near 51,060 levels, providing key support. As long as the index remains above 51,060, a ‘buy on dips’ strategy is advisable. On the upside, the Bank Nifty could aim to test the 52,000 level, which aligns with the double bottom pattern target.”

Global markets updates

Vinod Nair, Head of Research at Geojit Financial Services, commented on the current market environment, stating, “With mixed global signals and the absence of significant new catalysts, aside from the expected Fed rate cut, which is already priced in, the domestic market took a breather. Mild caution emerged due to a recent slowdown in manufacturing activities, signaling a potential dip in demand. However, optimism remains due to forecasts of an above-normal monsoon extending through September and accelerated capital expenditure by the Government of India in the second half of FY25, which boosted consumption and rural-based stocks like FMCG.”

Stocks to Buy Today:

For today’s stock picks, market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommend buying the following five stocks: Kajaria Ceramics, ICICI Bank, Zomato, JK Lakshmi Cement, and Finolex Cables.

Sumeet Bagadia’s Stock Recommendation Today:

1. Kajaria Ceramics (KAJARIACER):

• Buy at: ₹1386.2
• Target: ₹1500
• Stop Loss: ₹1328

Kajaria Ceramics is currently trading at ₹1386.2 and is in a consolidation phase after reaching an all-time high. The stock has stabilized near its demand zone and recently broke out of a falling trend line on the daily chart, forming a double-bottom pattern, which signals a potential trend reversal. This reversal is supported by a bounce. If the stock sustains above the ₹1400 level, it could continue its upward trajectory towards the ₹1500 mark.

The Relative Strength Index (RSI) is around 50.73, with a positive crossover, indicating increasing buying momentum. Additionally, Kajaria Ceramics has rebounded from its long-term (200-day) Exponential Moving Average (EMA) and has moved above its short-term (20-day) and medium-term (50-day) EMA levels, further reinforcing the strength of the current uptrend.

Given the current technical indicators and price action, Kajaria Ceramics appears well-positioned for a potential upward move. Investors might consider buying on dips, with a stop loss set at ₹1328 to manage risk. The target price of ₹1500 aligns with resistance levels and offers a favorable risk-reward ratio, making this a promising trading opportunity.

2. ICICI Bank:

• Buy at: ₹1247.70
• Target: ₹1320
• Stop Loss: ₹1210

ICICI Bank has shown impressive resilience, making a strong move towards its all-time high levels. With strong support at ₹1210, close to its 20-Day Exponential Moving Average (EMA), the stock is currently trading at ₹1247.70 and exhibits a positive trajectory, indicating underlying strength. The fact that the stock is trading above key moving averages further reinforces its robust position.

A minor resistance is observed around ₹1258, which is also the all-time high for the stock. A successful breach of this level could propel ICICI Bank towards the target of ₹1320 and beyond. This analysis highlights the stock’s resilience, technical strength, and the potential for continued upward movement. Based on this analysis, buying ICICI Bank at the current market price (CMP) of ₹1247.70 with a stop loss of ₹1210 is recommended, targeting ₹1320.

Ganesh Dongre’s Stock Recommendations Today:

3. Zomato:

• Buy at: ₹248
• Target: ₹260
• Stop Loss: ₹242

Recent short-term trend analysis of Zomato reveals a bullish reversal pattern, suggesting a potential temporary retracement in the stock’s price, potentially reaching around ₹260. The stock currently holds a crucial support level at ₹242 and is trading at ₹248, presenting a buying opportunity. Investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹260.

4. JK Lakshmi Cement:

• Buy at: ₹788
• Target: ₹815
• Stop Loss: ₹775

On the daily chart, JK Lakshmi Cement has observed a breakout at the ₹788 price level, signaling a potential upward trend. 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 ₹775 is recommended. The target price for this strategy is ₹815 in the coming weeks, suggesting potential gains as the stock continues its upward trajectory.

5. Finolex Cables:

• Buy at: ₹1440
• Target: ₹1520
• Stop Loss: ₹1410

On the short-term chart, Finolex Cables is forming a rounding bottom pattern, which is a bullish signal. Currently trading at ₹1440, this pattern suggests a potential upward trend. To manage risk, a stop loss at ₹1410 is recommended. The target price for this strategy is ₹1520 in the coming weeks, indicating potential gains as the stock follows its upward trajectory, supported by bullish technical indicators.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. It is strongly advised that investors consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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