Stock market today: Trade setup for Nifty 50 to global markets; 5 stocks to buy or sell on Friday — 3 January 2025 | Stock Market News

Indian stock market: The equity benchmark indices extended their gains on Thursday, with the Sensex surging by 1,436 points to settle at 79,944, and the Nifty advancing 446 points to close at 24,189. Both indices registered nearly a 2% rise, driven by strong performances in the IT and auto sectors.

On Thursday, the Sensex surpassed the 80,000 mark, while the Nifty 50 crossed the 24,200 level. Additionally, the Nifty reclaimed key technical benchmarks, trading above its 20-day and 50-day moving averages during the session.

Trade Setup for Thursday

On the Nifty outlook, Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty has moved above the 200 DMA after several failed attempts in recent sessions. Additionally, the index has crossed above the 21 EMA on the daily timeframe, confirming a bullish trend. The RSI is also in a bullish crossover. The index appears to be a “buy on dips” candidate following a strong closing. Support is placed at 24,000, while on the higher end, it may move towards 24,500.”

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.

Sumeet Bagadia’s stocks to buy today

1.Policy Bazaar – Bagadia recommends buying Policy Bazaar at ₹2203.25, keeping Stoploss at ₹2120 for a target price of ₹2350.

POLICYBZR showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹2203.25. 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 POLICYBZR 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 POLICYBZR Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying POLICYBZR in cash at CMP of 2203.25 for the target of 2350 with a stop loss of 2120.

2. Pearl Global Industries Ltd – Bagadia recommends buying PGIL at ₹1533.6 keeping Stoploss at ₹1480 for a target price of ₹1616.

PGIL daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company’s recent upward swing has effectively violated the neckline, with a significant breakout above the key resistance level around 1480. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

This trend signals strong momentum in the stock. There is potential for PGIL to attain a target price of ₹1616 in the near term.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish momentum on daily chart signalling a potential continuation of the uptrend. Furthermore, PGIL is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend.

For traders, keeping an eye on the strong support near 1480 levels is advisable, as a breach of this level could signal a shift in sentiment.

Based on the above analysis we recommend buying PGIL and the CMP of 1533.6 with a stop loss of 1480 for the target of 1616.

Ganesh Dongre’s stocks to buy today

3. AB Capital: Dongre recommends buying AB Capital at ₹184 keeping Stoploss at ₹177 for a target price of ₹195.

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 ₹195. At present, the stock is maintaining a crucial support level at Rs. 177. Given the current market price of Rs.184, 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.195.

4. REC Ltd: Dongre recommends buying REC Ltd at ₹520 keeping Stoploss at ₹510 for a target price of ₹535.

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around ₹535. The stock is currently maintaining a crucial support level at ₹510. Given the current market price of ₹520, 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 ₹535.

5. Paytm: Dongre recommends buying Paytm at ₹980 keeping Stoploss at ₹960 for a target price of ₹1010.

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around Rs. 1010. The stock is currently maintaining a crucial support level at Rs.960. Given the current market price of Rs.980, 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. 1010.

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.