Stock market today: Trade setup for Nifty 50 to US dollar; 5 stocks to buy or sell on Monday — 6 January, 2025

Stock market today: The domestic stock market indices closed in the red on Friday, January 3, as investors booked their profits amid a weak global cue. The Nifty 50 index closed 0.76 per cent lower at 24,004.75 points, compared to 24,188.65 points at the previous market close. 

The BSE Sensex index closed 0.90 per cent lower at 79,223.11 points on Friday, compared to 79,943.71 points at the previous stock market close. 

Trade Setup for Monday

On the outlook for the Nifty 50 and the Bank Nifty index, Parekh said, “Nifty found resistance near the important 50EMA zone of 24,200 levels after the strong pullback witnessed in the previous session and with profit booking seen closed near the 24,000 zone with bias and sentiment maintained cautiously positive anticipating for further rise in the coming days.”

“The index would have the important support near the 200 period MA at 23,900 levels which needs to be sustained to maintain the overall bias intact. On the upside, we expect the initial target of 24,800 level to be achieved once the 50EMA zone is decisively breached,” said the stock market expert.

“Bank Nifty was subjected to heavy profit booking erasing the gains witnessed in the last session slightly weakening the bias and once again the 200 period MA at 50,650 levels shall be crucial support which needs to be sustained. On the upside, as mentioned earlier, the index needs to decisively breach above the resistance barrier near the 50EMA level of 51,900 to establish conviction and thereafter, anticipate for further rise in the coming days,” said Parekh.

Parekh said that the Nifty 50 Spot for today has support at 23,800 points and resistance at 24,250 points. The Bank Nifty index would have a daily range of 50,600 to 51,700.

US Dollar

The United States Dollar Index Spot was trading 0.40 per cent lower at 108.95 as of 12:00 a.m. (EST) on Friday, January 3, according to the Bloomberg Dollar Index.

The US dollar index was set for its strongest weekly performance since November, making gold more expensive for foreign buyers, reported the news agency StuffsEarth. Media reports also mentioned that the base metal prices also took a hit on Friday, as the dollar’s strength hurt the commodities market. 

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 stocks for Monday.

These include GAIL India Ltd., Shriram Finance Ltd., Aditya Birla Capital Ltd., Authum Investment & Infrastructure Ltd., and Titan Company Ltd.

Sumeet Bagadia stocks to buy today

1. Titan Company Ltd. (TITAN): Buy at ₹3,451.65; Target at ₹3,693; Stop Loss at ₹3,330.

TITAN is currently trading at ₹3,451, demonstrating a strong uptrend as it continues its upward reversal from lower levels, signaling sustained bullish momentum. The stock is on the verge of breaking the key resistance level of ₹3,500. A breakout above this level is anticipated to enhance market sentiment, favoring buyers and potentially driving further gains.

TITAN is trading comfortably above its 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs) and has recently achieved a breakout and closing above the 200-day EMA, further solidifying the bullish trend. The Relative Strength Index (RSI) is at 59.62 and trending upward, indicating increasing buying momentum. If the stock sustains above ₹3,500 and achieves a decisive breakout, it could advance toward its next short-term target of ₹3,693, continuing its upward trajectory.

On the downside, immediate support is identified at ₹3,370. To manage risk effectively, traders are advised to set a stop-loss at ₹3,330 to protect against unexpected market reversals. Considering the current technical setup and prevailing market conditions, TITAN presents a promising buying opportunity with a target of ₹3,693, provided appropriate risk management measures are employed. 

2. Authum Investment & Infrastructure Ltd. (AIIL): Buy at 1,948.2; Target at ₹2,080; Stop Loss at ₹1,880.

AIIL showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹1948.2. The stock has been experiencing robust buying interest, leading to consecutive gains and an attempt to consolidate after the recent surge.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock’s positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in AIIL price action.

The surge in volume associated with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for AIIL Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock. 

Ganesh Dongre stocks to buy today 

3. GAIL India Ltd. (GAIL): Buy at ₹191; Target at ₹200; Stop Loss at ₹185. 

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 ₹200. At present, the stock is maintaining a crucial support level at ₹185. Given the current market price of ₹201, 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 ₹200. 

4. Shriram Finance Ltd. (SHRIRAMFIN): Buy at ₹3,040; Target at ₹3,140; Stop Loss at ₹2,980.   

We have seen a major support in this stock around ₹2,980. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹3,040 price level, which may continue its rally till its next resistance level of ₹3,140 so traders can buy and hold this stock with a stop loss of ₹2,980 for the target price of ₹3,140 in the upcoming weeks. 

5. Aditya Birla Capital Ltd. (ABCAPITAL): Buy at ₹185; Target at ₹195; Stop Loss at ₹178. 

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests that there could be a temporary retracement in the stock’s price, possibly to around ₹195. Currently, the stock is holding a crucial support level at ₹178.

Given this scenario, there is potential for the stock to rebound towards the ₹195 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at ₹178 to manage risk effectively. The target price for this trade is  ₹195. 

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.