Stock market today: On Tuesday, August 27, Indian equity market benchmarks Nifty 50 and Sensex ended the day unchanged. The Nifty 50 rose 7 points to close at 25,017.75, while the Sensex gained 14 points to close at 81,711.76. In contrast, the mid-cap and small-cap segments posted notable gains, with the BSE midcap and smallcap indices rising by half a percent each.

Trading setup for Wednesday

Commenting on the Nifty outlook today, Rupak De, senior technical analyst at LKP Securities, said, “Sentiment has entered an indecisive phase as the Nifty closed with a doji pattern on the daily chart. Strong presence of both call and put option sellers at the 25,000 strike price strengthens the technical setup. As a result, the Nifty is likely to remain range bound or see a minor decline in the near term. On the lower end, 24,800 could act as an immediate support while a move above 25,100 could push the Nifty towards 25,300.”

Commenting on today’s outlook for the Bank Nifty, Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C. Mehta Investment Interrmediates Ltd said, “The Bank Nifty opened positively, witnessed buying interest and ended the day higher at 51,279. Technically, the Bank Nifty has formed a green candle on the daily scale and managed to close above the trend line resistance, indicating strength. Moreover, the index is holding firmly above its 21-DEMA support which is near 50,860. As long as the index remains above 50,860, a buy on dips strategy is advisable. On the upside, the 51,800-52,000 area will act as resistance in the near term.”

Stocks you should buy today

When it comes to stocks to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommend five stocks.

Sumeet Bagadia’s stock recommendations today

1) Godrej Industries: Buy at ₹1009.6, Target ₹1064, Stop Loss ₹973

The share price of Godrej Industries is currently ₹1,009.6. After a phase of small declines and sideways consolidation, the stock recently reached the neckline of ₹960 and is rapidly rising with considerable volume. A further upward movement is expected, which may ₹1,064 levels. On the downside, significant support is seen near ₹973.

Additionally, Godrej Industries shares are trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating strong bullish momentum and suggesting a potential for sustained upside. The Relative Strength Index (RSI) is at 76.19, signaling a bullish move and confirming an increase in buying momentum.

To manage risk effectively, it is advisable to set a stop loss (SL) at ₹973 to protect the investment in the event of an unexpected market reversal.

In conclusion, considering the technical analysis and the prevailing market conditions, Godrej Industries stock represents a promising buying opportunity for those who are ₹1,064 price target, subject to the implementation of prudent risk management measures.

2) ICICI Lombard General Insurance Co Ltd: Buy at ₹2153.35, Target ₹2277, Stop Loss ₹2077

ICICI Lombard General Insurance Company is in a long-term uptrend and is currently trading near its all-time high of ₹2,153.35, with higher highs and higher lows being formed consistently on the daily chart. The stock has recently formed a strong bullish candlestick supported by high trading volumes, suggesting a continuation of the uptrend. If the stock maintains its position above the ₹2,160 could potentially push it further towards an upside target of ₹2,277.

The Relative Strength Index (RSI) is at 76.54, which indicates that the stock is not yet in the overbought zone and leaves room for further upside. Moreover, ICICI Lombard share price recently bounced off its short-term (20-day) Exponential Moving Average (EMA), suggesting strong support at these levels.

Based on these technical indicators, we recommend a long position in ICICI Lombard stock at ₹2,153.35. Set a stop loss at ₹2,077 to manage risk and aim for a target price of ₹2,277, which is consistent with the current positive market sentiment.

Ganesh Dongre shares you can buy today

3) NCC Ltd: Buy at ₹328, Target ₹345, Stop Loss ₹315

A notable bullish reversal pattern has emerged in the recent short-term trend analysis of NCC stock. This technical pattern suggests the possibility of a temporary correction in the stock price, possibly around ₹345. Currently, the stock holds a crucial support level at ₹315. Given the current market price of ₹328, a buying opportunity exists. This suggests that investors could consider purchasing the stock at the current price as they expect an increase towards the set target of. ₹345.

4) Reliance Industries: Buy at ₹3002, destination ₹3060, stop loss ₹3950

On the daily chart of Reliance Industries stock, a breakout at ₹A price level of 3,002 was observed, indicating a possible uptrend. Complementing this breakout, the Relative Strength Index (RSI) continues to point upwards, suggesting increasing buying momentum. Given these technical indicators, traders can consider buying Reliance shares on dips and entering the stock at a lower price. To manage the risk, a stop loss should be placed at ₹2,950 is recommended. The price target for this strategy is ₹3,060 in the coming weeks, suggesting a possible gain as Reliance Industries stock continues its uptrend.

5) Tata Power: Buy at ₹429, Target ₹445, Stop Loss ₹420

On the short-term chart, Tata Power stock is forming a rounded bottom pattern, which is bullish in nature. The current price is ₹429, this formation signals a possible uptrend. To manage the risk effectively, a stop loss should be placed at ₹420 is recommended.

The price target for this strategy is ₹445 in the coming weeks. This indicates a possible gain as the stock continues its uptrend, supported by the bullish technical signals.

Disclaimer: The views and recommendations contained in this analysis are those of individual analysts or brokerage firms and not of Mint. We strongly advise investors to seek advice from certified professionals before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.