Stock market today: Trade setup for Nifty 50 to Bank Nifty, five stocks to buy or sell on Wednesday — July 3

Stock market today: Market indices benchmark - Nifty and Sensex - reached new intra-day highs  on Tuesday but couldn't maintain the momentum, closing with slight losses due to subdued global signals. The Nifty 50 reached a new all-time peak of 24,236.35 during the session but concluded slightly lower, down 18 points or 0.07 per cent, at 24,123.85. Similarly, the Sensex, comprising 30 shares, achieved a fresh record high of 79,855.87 before settling with a minor decline of 35 points or 0.04 per cent, closing at 79,441.45.

“The domestic market took a breather, resonating with the mixed global trend, with the ECB showing caution regarding further rate cuts. In sectoral trends, IT stocks gained due to expected increases in discretionary spending, while auto stocks declined following lower-than-expected monthly volumes. The investors are closely monitoring the progress of the monsoon, the forthcoming union budget, alongside the US election, which can have potential global economic implications. Recent spikes in US Treasury yields and a gradual rise in crude oil prices are affecting market trends,” said Vinod Nair, Head of Research, Geojit Financial Services.

Trade setup for Wednesday

On the outlook for Nifty today, Rupak De, Senior Technical Analyst, LKP Securities, said, "The Nifty faced profit booking around 24,200, leading to a close 100 points off the high. The sentiment is likely to favour selling on rallies until it moves above 24,250. On the lower end, 24,000 is likely to act as immediate support for the Nifty. A fall below 24,000 might trigger a correction towards 23,850/23,700."

On today's outlook for the Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, "The Bank Nifty index witnessed selling pressure from higher levels and faced rejection at the 52,400-52,500 levels. The index remains in a sell-on-rise mode with the next immediate support at the 52,000-51,800 zone. If the index fails to hold this support, it can witness further selling pressure towards the 51,400-51,300 level."

Buy or sell stock ideas by experts

Regarding 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, recommended these five buy-or-sell stocks: SBI Life, Indigo, DMart, Bombay Dyeing and Craftsman.

Sumeet Bagadia's stocks to buy today

1] SBI Life Insurance: Buy at ₹1,495, target ₹1,550, stop loss ₹1,460

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 ₹1,550. At present, the stock is maintaining a crucial support level at ₹1,460. Given the current market price of around ₹1,495, 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 ₹1,550.

2] Indigo: Buy at ₹4,249, target ₹4,380, stop loss ₹4,180

We have seen a major support in this stock around ₹4,180 So, at the current juncture, the stock has again seen a reversal price action formation at the ₹4,249 price level, which may continue its rally till its next resistance level of ₹4,380 so traders can buy and hold this stock with a stop loss of ₹4,180 for the target price of ₹4,380 in the upcoming weeks.

3] DMart: Buy at ₹4,770, target ₹4,950, stop loss ₹4,650

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 ₹4,950 Currently, the stock is holding a crucial support level at ₹4,650.

Ganesh Dongre's buy or sell stocks

4] Bombay Dyeing: Buy at ₹216.50, target ₹228, stop loss ₹209

Bombay Dyeing is exhibiting strong bullish momentum, currently recording an all-time high of ₹219.3 levels. The recent breakout above the crucial resistance at 207 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.

Additionally, Bombay Dyeing stock is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 75 levels.

For traders, keeping an eye on the strong support near ₹209 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, Bombay Dyeing current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying Bombay Dyeing and the CMP of ₹216.50 with a stop loss of ₹209 for the target of ₹228.

5] Craftsman Automation: Buy at ₹5,695.3, target ₹5,999, stop loss ₹5,499

Craftsman Automation is exhibiting strong bullish momentum, currently trading at an all-time high of ₹5,791.2 levels. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, 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.

Additionally, Craftsman is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 84 levels.

For traders, keeping an eye on the strong support near ₹5,499 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, Craftsman's current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying Craftsman and the CMP of ₹5,695.3 with a stop loss of ₹5,499 for the target of ₹5,999.

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.