Trade setup for stock market today: Five stocks to buy or sell on Thursday (2024)

The Indian benchmark indices is off to a flat start, based on Gift Nifty's trends. The Gift Nifty was trading at a premium of around 5.1 points from the previous closing of the Nifty futures, at 22,666.10.

Consumer stocks and heavyweight Reliance Industries spurred rises in the domesticbenchmark indices, the Sensex and the Nifty 50, which finished higher on Wednesday. On the expectation that the Federal Reserve minutes will contain clues about a rate decrease, domestic IT stocks fell.

Also Read: Indian stock market: 5 key things that changed for market overnight - Gift Nifty to Nvidia results, US Fed meet minutes

During the Wednesday session, the blue-chip NSE Nifty 50 gained 0.31% to 22,597.8 points, while the S&P BSE Sensex increased 0.36% to 74,221.06.

The India VIX fear indicator decreased 1.6% to 21.5 on Wednesday, suggesting that there is little volatility in the Indian stock market. Given the stable medium-to-long-term outlook for the domestic market, investors' focus has turned from election-related concerns to the fundamentals of stocks.

Trade setup for Thursday

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty 50 is still trending upward and is finding support at 22,500. Within a rising channel, the index has been climbing. As long as it continues over 22,500, the trend is probably going to continue being strong. With immediate support at 22,600, the index may climb higher in the near future, maybe as high as 22,800. If the index falls below 22,600, it may momentarily go up near 22,500.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today - May 23

Buy or sell stock ideas by experts

Prabhudas Lilladher's Shiju Koothupalakkal, and Choice Broking's Sumeet Bagadia have suggested a total of five buy or sell stocks for today. These stocks are arranged and explained further under the names of the experts.

Shiju Koothupalakkal's shares to buy today

Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi

1. Tata Consumer Products: Buy at ₹1,120, target ₹1,165, stop loss ₹1,090

The stock has witnessed a decent consolidation with currently indicating a bullish candle formation moving past the important 50EMA level of 1,116 to improve the bias and anticipate for further rise in the coming sessions. The RSI has shown improvement with much upside potential visible from current rate and can carry on with the positive move further ahead. We suggest to buy the stock for an initial target of 1,165 keeping the stop loss of 1,090 level.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 23

2. GMR Airports Infrastructure: Buy at ₹87.50, target ₹92, stop loss ₹86

The stock recently has picked up well from the significant 50EMA level of 82.70 to improve the bias and with the RSI on the rise indicating strength has much upside potential to carry on with the positive move further ahead. With the chart looking attractive, we suggest to buy the stock for an initial upside target of 91 keeping the stop loss of 86.

3. Mahindra & Mahindra Financial Services: Buy at ₹266, target ₹278, stop loss ₹260

The stock after the consolidation has shown signs of improvement with volume participation on the rise to anticipate for further rise in the coming sessions. The RSI is also well placed and has signalled a buy with upside potential visible from current rate. With the chart looking good, we suggest to buy the stock for an initial target of 278 keeping the stop loss of 260.

Sumeet Bagadia, Executive Director at Choice Broking

4. Divi's Laboratories: Buy at 4,058.55, target ₹4,375, stop loss ₹3,890

Based on a comprehensive technical analysis, Divi's Lab is currently trading at 4,058.55, exhibiting significant strength. The stock has found substantial support at the 3,890 level, which is close to its 20-day Exponential Moving Average (EMA). Trading above key EMAs, including the 20, 50, and 200-day averages, Divi's Lab indicates a positive trend and a favourable outlook for investors.

The stock's ability to stay above these crucial moving averages suggests a robust bullish sentiment. The Relative Strength Index (RSI) stands at 66.40, further reinforcing the upward momentum. An RSI above 60 generally indicates a strong trend, aligning with the bullish sentiment observed in recent trading sessions.

Overall, the technical indicators suggest that Divi's Lab is well-positioned for continued strength. Investors might consider this stock a promising candidate for their portfolios, given its upward trajectory and solid support levels. However, it is always advisable to keep an eye on market conditions and set appropriate stop-loss levels to manage risk effectively.

Given these indicators, it is advisable to consider Divi's Lab as a potential buy opportunity, with an anticipated target price of 4,375. To manage risk, a stop-loss order should be placed at 3,890, providing a prudent level of protection for the investment.

Also Read: Q4 Results Today: IndiGo, ITC, Fortis Healthcare and ICRA among 181 companies to post earnings on May 23

5. Infosys: Buy at 1,454.8, target ₹1,542, stop loss ₹1,411

Infosys is currently valued at ₹1,454.8. It recently consolidated at the bottom and formed a bullish engulfing pattern, suggesting a bullish reversal, accompanied by robust trading volume. These patterns indicate a strong potential upward trajectory in the stock.

The Relative Strength Index (RSI) presently stands at 52 and is trending upwards, suggesting a significant surge in buying momentum. Both the RSI and Stochastic RSI are in the overbought region, indicating that positional traders may consider holding their positions and implementing a trailing stop-loss.

The overall trend for Infosys is bullish, with various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to reach target prices of ₹1,542 in the near term.

It is advisable to consider buying on dips, especially around ₹1,435, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at ₹1,411 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 23 May 2024, 08:39 AM IST