Trade Setup for Nifty 50 and Global Markets | Top 5 Stocks to Buy or Sell Today – September 4

Nifty 50 Overview

As of September 4, 2024, the Nifty 50 index remains a focal point for investors and traders alike. The index encountered strong resistance at 25,300, attributed to significant call option writing at this level. On the technical front, Nifty's ability to surpass the 25,300 mark is crucial for any further upward movement towards 25,500. Conversely, the support levels are firmly positioned at 25,200 and 25,000.

According to Rupak De, Senior Technical Analyst at LKP Securities, "Nifty remained rangebound, closing positively for the 14th consecutive day. A decisive move above 25,300 might trigger a rally, with downside support at 25,200 and 25,000."

Global Market Outlook

Global markets are exhibiting mixed signals today, with the absence of major new catalysts except for the anticipated Federal Reserve rate cut, which the market has largely priced in. There is mild caution due to a slowdown in manufacturing activities, indicating weaker demand. However, positive sentiments stem from expectations of an above-normal monsoon extending through September, coupled with the Indian government's accelerated capital expenditure in the latter half of FY25. These factors are particularly beneficial for FMCG and rural-based stocks.

Vinod Nair, Head of Research at Geojit Financial Services, commented, “The domestic market took a breather amidst mixed global signals and the absence of significant new catalysts. However, predictions of an above-normal monsoon and accelerated capex by the GoI boosted consumption and rural-based stocks.”

Top 5 Stocks to Buy Today

1. Kajaria Ceramics (NSE: KAJARIACER)

• Buy at: ₹1386.2
• Target: ₹1500
• Stop Loss: ₹1328

Kajaria Ceramics is in a consolidation phase after reaching its all-time high. The stock has formed a double-bottom pattern on the daily chart, signaling a potential trend reversal. With the Relative Strength Index (RSI) around 50.73, the stock shows increasing buying momentum. Investors can consider buying on dips with a target of ₹1500.

2. ICICI Bank (NSE: ICICIBANK)

• Buy at: ₹1247.70
• Target: ₹1320
• Stop Loss: ₹1210

ICICI Bank continues to demonstrate strength, trading near its all-time highs. The stock has strong support at ₹1210, close to its 20-Day EMA. A breach above ₹1258 could propel the stock towards ₹1320, making it an attractive buy for investors.

3. Zomato (NSE: ZOMATO)

• Buy at: ₹248
• Target: ₹260
• Stop Loss: ₹242

Zomato has shown a bullish reversal pattern, suggesting a potential price rise to ₹260. The stock is currently holding a crucial support level at ₹242, making it a viable buy at the current price.

4. JK Lakshmi Cement (NSE: JKLAKSHMI)

• Buy at: ₹788
• Target: ₹815
• Stop Loss: ₹775

JK Lakshmi Cement has broken out at the ₹788 level, indicating a potential upward trend. The RSI is turning up, suggesting increasing buying momentum. A target of ₹815 offers a favorable risk-reward ratio.

5. Finolex Cables (NSE: FINCABLES)

• Buy at: ₹1440
• Target: ₹1520
• Stop Loss: ₹1410

Finolex Cables is forming a rounding bottom pattern, which is inherently bullish. The stock is currently priced at ₹1440, with technical indicators pointing to a potential move towards ₹1520.

Conclusion

The stock market continues to offer promising opportunities, particularly with Nifty 50 poised at a crucial resistance level. Traders should watch the key support and resistance levels closely, while considering the five expert-recommended stocks for potential gains. As always, consult with certified financial experts before making any investment decisions.