Stock market today: Trade setup for Nifty 50 to US dollar; five stocks to buy or sell on Monday — Nov 18

Stock Market Today:  The correction phase in the market continued during the week ending 14 November. Benchmark Nifty-50 Index and S&P BSE Sensex ended near the week’s lows at 23,532.70 and 77,580.30, respectively, down almost 2.5% over the previous week. Bank Nifty corrected by more than 3% as all other sectors, led by Auto, metals, and FMCG, ended lower. While IT was relatively stable, Broader indices cracked, with mid and small-caps ending more than 4% lower. 

Trade Setup for Monday

The current market texture is weak but oversold. For positional traders, the 200-day SMA (Simple Moving Average), 23500 for Nifty and 77400 for Sensex, would act as a sacrosanct support zone. Above the same, we could expect one quick technical pullback rally until 23800-24000 for Nifty and 78500-79000 for Sensex, said Amol Athawale, VP-Technical Research, Kotak Securities. 

We expect the Bank Nifty to head south towards 49700 (200 DMA). On the upside, 50560 – 50700 shall act as an immediate hurdle zone from a short-term perspective, said Jatin Gedia – Technical Research Analyst at Sharekhan

Global market outlook & US dollar

While Asian Markets remained weak, European and US markets also ended the week on a soft note

“The domestic market is in correction terrain. Weakness in Q2FY25 results and sustained outflow of foreign funds weighed on the sentiment, said Vinod Nair, Head of Research, Geojit Financial Services.. On the other hand, a spike in domestic CPI inflation to a 14-month high of 6.2%, a firm dollar index, and a rising US 10-year yield signal that the volatility will continue in the short term, added Nair.

“Nifty ended lower for the second week in a row, falling 2.55% and fell for 6 out of the past 7 weeks as earnings from India Inc. continued to weigh on investors’ sentiment at a time when an increase in safe-haven assets like the dollar index, and US treasury yields weighed on risk assets like emerging markets’ equities,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

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 stock ideas.

Sumeet Bagadia’s stocks to buy today

1] Garware Hi-Tech Films: Buy at ₹4275.80, target ₹4600, stop loss ₹4125.

Garware Hi-Tech Films share price is exhibiting strong bullish momentum, currently trading at an all-time high of 4418 levels. The recent breakout above the crucial resistance at 4200 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.

2. Gokul Agro Resources Ltd – Buy at ₹318.40, keeping Stop Loss at ₹306 for a target price of ₹340.

Gokul Agro is exhibiting strong bullish momentum, the daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. This breakout has been accompanied by a consolidation of the upward movement, characterized by Higher High and Higher Low Pattern. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Ganesh Dongre’s stocks to buy today

3. Info Edge (India) Ltd– Dongre recommends buying Info Edge (NAUKRI) at ₹7770 keeping Stoploss at ₹7600 for a target of ₹8100 

The stock having a substantial support at Rs.7600, marking a crucial juncture in its recent trading. Presently, at Rs.7770, 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 ₹7600. The anticipated target for this trade is Rs.8100, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock’s anticipated rally in the weeks ahead..

4. TVS Motor Company Ltd– Dongre recommends buying TVS Motor Company at ₹2396 with stoploss at ₹2335 for a target price of ₹2475.

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 Rs.2475. At present, the stock is maintaining a crucial support level at Rs.2335 Given the current market price of ₹2396, 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 Rs. 2475.

5. Cummins India Ltd – Dongre recommends buying Cummins at ₹3330 keping stoploss at ₹3275 for a target price of ₹3400

On the daily chart of this stock, a breakout at the Rs.3330 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 Rs.3275 is recommended. The target price for this strategy is Rs.3400 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

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.