Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Wednesday — Dec 11
Stock Market Today: In the previous session, Nifty 50 and Sensex, the Indian equity benchmarks, settled flat. The losses of Reliance Industries Limited, Larsen and Toubro, and Bharti Airtel, offset the gains of the select heavyweights including State Bank of India, ICICI Bank, and Infosys.
Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Wednesday — Dec 11
After the gains of the last three weeks stopped on Friday, the Nifty 50 has traded within a narrow range of less than 170 points. It has seen a fall for the third day, dropping by 0.04% or 8.95 points and settled at 24,610.05. In the Intraday trade, it hits a low of 24,510.65, slipping 0.44% or 108.35 points.
The BSE Sensex closed at 81,510.05, edging up 1.59 points, with 16 of its components gaining and 14 losing. Outperformance led by mid and small-caps is seen in the broader market, continuing its positive trend. The BSE Midcap index gained 0.30% and Smallcap rose 0.33.
The BSE IT index hit a record high of 45,154.10 in expectation of betterment in US IT spending. After foreign brokerage J.P. Morgan raised near-term concern about earnings growth for fiscal year 2025, Reliance Industries, the second-heaviest stock in the Nifty 50 index, fell.
Trade setup for Wednesday
On the daily chart of the Nifty 50 index, a small red candle is formed. However, it is still above the breakout point of the inverted head and shoulder chart pattern, displaying strength. The support of the 100-day exponential moving average is near 24,340.
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, said, ‘As long as the index continues above it, traders must approach buy-on-dips strategy. In the short term, the index may test 24,800 to 25,000 on the upside.
On the daily chart of Bank Nifty, a green candle is formed, showing strength. However, it is still facing short-term resistance at 53,900 to 54,000 levels. If it holds above 54,000 levels, the rally may continue, reaching 54,500.
Global Markets
Investors on Wall Street are hoping that this would be the third cut in interest rates this year. Since September, the US Fed has begun to ease the general rates from their highest levels in two decades in an attempt to boost the failing jobs market after it got inflation near its two-per-cent target. Lowering the interest rates may thus serve to support the economy while possibly adding a little more flame to US CPI inflation.
Stocks to buy today
The Executive Director at Choice Broking, Sumeet Bagadia recommends two stocks for today, LTI Mindtree and Shriram Finance. Ganesh Dongre the Senior Manager of Technical Research at Anand Rathi suggests three stocks, Bank of Baroda, Godrej Consumer Products, and Marico Ltd.
