Stock market today: Trade setup for Nifty 50 to Sensex today, five stocks to buy or sell on Wednesday — July 31

Indian stock market: The market indices - Sensex and Nifty50  ended the day flat due to mixed global signals, on Tuesday. The Nifty 50 opened at 24,839.40, slightly above its previous close of 24,836.10, and reached an intraday high of 24,971.75 and a low of 24,798.65. The BSE Midcap index increased by 0.27%, while the Smallcap index went up by 0.88%. Consequently, the total market capitalization of the companies listed on the BSE reached a record high of nearly ₹461 lakh crore.

Trade setup for Wednesday

Speaking on the outlook for the Nifty today, Rupak De, Senior Technical Analyst, LKP Securities, "The Nifty oscillated between 24,800 and 25,000 before closing on a flat note. It seems that the bulls are taking a breather following a rally from 24,200. The trend remains positive, with Put writers putting their weight at 24,800. Buy-on-dips might remain the flavor of the market until the Nifty falls decisively below 24,700. On the higher end, a move above 25,000 might open the gate towards 25,250."

On the outlook for the Bank Nifty today, De further added, "Bank Nifty encountered selling pressure around its 21-day EMA but managed to close above its rising channel breakout point. On the options front, active put writers at lower strike prices indicate strong support at the 51200 level. Consequently, the view for Bank Nifty is range-bound, with support at 51000 and resistance at 51800 and 52000 levels. A decisive breakout of these levels will determine the future direction of Bank Nifty."

Stocks to buy today

Regarding intraday stocks for today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended these five buy or sell stocks: Gujarat Mineral Development Corpn, Jindal Steel And Power, Finolex Cables, Chambal Fertilisers and Chemicals and Voltas.

Sumeet Bagadia's stock recommendations today

1] Chambal Fertilisers: Buy at ₹516.75 | Target Price: ₹560 | Stop Loss: ₹495

CHAMBLFERT is trading at 516.75 and has given a breakout of a falling trend line. The stock has been consolidating near its demand zone and has bounced back from its key moving averages. This breakout indicates a potential continuation of the upward trend. If CHAMBLFERT manages to hold 521 on a closing basis, it may reach an upside target of 560.

The RSI is at 57.26 levels, with a positive crossover, indicating an increase in the buying momentum. Additionally, CHAMBLFERT has bounced back from its medium-term (50-day) EMA and is trading above its short-term (20-day) EMA, reinforcing the bullish outlook.

In light of these technical indicators, we recommend entering a long position in CHAMBLFERT@ 516.75. With a clearly defined stop loss of 495 and a favorable target price of 560, this investment aligns well with the current positive market sentiment.

2] VOLTAS: Buy at ₹1543.95 | Target Price: ₹1650 | Stop Loss: ₹1490

VOLTAS is currently in an upward trend, consolidating near its historical peaks. The stock is showing signs of trying to break through higher levels, supported by notable trading volumes that reflect the strength of the trend. If VOLTAS manages to surpass the 1560 mark, it could potentially advance towards a target of 1650.

The RSI is at 62.21 levels, is trending upward and appears positive, indicating a potential increase in buying pressure. Moreover, VOLTAS is trading above its key moving averages, including the short-term (20 Day) and medium-term (50 Day) EMA levels, which confirms the strength of the current uptrend.

In summary, based on the technical setup and indicators (RSI and moving averages), buying VOLTAS at 1543.95 levels with a stop-loss at 1490 and a target price of 1650, presents a compelling opportunity for potential gains.

Ganesh Dongre's shares to buy today

3] Gujarat Mineral Development Corpn: Buy at ₹400 | Target Price: ₹420 | Stop Loss: ₹390

GMDCLTD has recently displayed a bullish trend with a significant breakout above Rs.400 on the daily chart. This breakout suggests strong upward momentum, making it an opportune time to consider initiating a buy position. By maintaining a stop-loss (SL) at Rs.390, investors can manage potential downside risks effectively. The target price for this investment is set at Rs.420, indicating a potential upside from the current levels.

4] Jindal Steel And Power: Buy at ₹979 | Target Price: ₹1010 | Stop Loss: ₹950

In the short-term trend, the stock has seen a strong support at price level of 950, technically retrenchment could be possible till Rs.1010 so, holding the support level of Rs.950 this stock can bounce toward the level Rs.1010 in the short term, so the trader can go along with a stop loss of Rs.950 for the target price of Rs.1010.

5] Finolex Cables: Buy at ₹1580 | Target Price: ₹1640 | Stop Loss: ₹1530

On the daily chart, the stock has shown a short-term reversal pattern. Specifically, a bullish engulfing pattern has formed, which is a strong indicator of potential upward movement. This technical pattern is considered bullish in nature, suggesting that the stock may experience a rise in price. Given this setup, traders might consider buying this stock, setting a stop loss at Rs. 1530 to manage risk. The target price for this trade is Rs. 1640, providing an opportunity for gains as the stock continues to demonstrate bullish behavior.

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