Stock Market Today: Profit Booking in index heavyweights as Reliance Industries and banking counters, coupled with a fall in Japan’s Nikkei index, weighed on the Indian stock market on Monday. The benchmark Nifty-50 index and the SP& BSE Sensex are at 25,810.85 and 84,299.78, respectively, down 1.5%. Only Metals shone after China’s stimulus news, and China’s manufacturing data came in better than expected. Also, other indices ended in the red, including Bank Nifty, which at 52,978.10 ended with a 1.5% loss.

Trade setup for Tuesday

Nifty fell on Sept 30 with a down gap and formed a long bearish candle. It showed no signs of significant intraday recovery. Nifty has shown signs of trend reversal and could fall soon, said Deepak Jasani, Head of Retail Research at HDFC Securities. Nifty could face resistance from the 25956-26011 band while 25446 could offer support in the near term, said Jasani

Bank Nifty has eroded some gains from the peak zone of 54467 levels in the last 2 sessions and with near-term support of 52300 zone said Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher. A further breach below shall weaken the overall bias with next major support positioned near 51300 levels, said Parekh.

Global Markets Outlook

Asian markets had a wild start to the week, with Tokyo’s Nikkei 225 index sinking nearly 5 per cent while Chinese markets soared on news of fresh stimulus for the faltering economy. European stock markets retreated Monday, the last day of September, as investors digested a series of local economic releases as well as the differing performances of the major Asian indices.

In the near term, Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services expects the market to consolidate after witnessing one side move in the last few weeks. Sector-wise the focus could shift towards IT & Banking space as companies would be releasing their pre-quarterly updates starting this week.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking has recommended two stock picks for Monday. Also, Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi has given another three stock picks for today.

These include Jyothy Labs Ltd, Whirlpool Of India LTD, HDFC Life Insurance Company Ltd , Reliance Industries Ltd and Larsen & Toubro Ltd

Sumeet Bagadia’s stocks to buy today

1. Jyothy Labs Ltd- Sumeet Bagadia recommends buying Jyothy Labs Ltd at ₹558 with Stop Loss at ₹541 and target price of ₹592

Jyothy Labs is currently trading at ₹558, forming a strong bullish candle on the daily chart, indicating a potential reversal from key support levels. The stock has witnessed a bounce from its support zone, signaling a reversal pattern backed by an increase in trading volumes, which reflects a bullish outlook. If JYOTHYLAB sustains above the critical level of ₹575, it could likely continue its upward momentum towards the target price of ₹592.

2.. Whirlpool Of India LTD – Sumeet Bagadia recommends buying Whirlpool Of India at ₹2289.6, keeping Stop loss at ₹2220 with a target price of ₹2427

Whirlpool Of India is trading at ₹2,289.60 and has touched its all-time high of ₹2,340.80 today. The stock shows a breakout after a consolidation period and reflects a strong uptrend. It has been forming higher highs and higher lows, which indicate a bullish trend. If the stock closes above the key resistance level of ₹2,340, it could see a short-term target of ₹2,427.

Ganesh Dongre’s stocks to buy today

3. HDFC Life Insurance Company Ltd– Dongre recommends buying HDFC Life Insurance Company at ₹718 with stoploss at ₹695 for a target price of ₹745.

A notable bullish reversal pattern has emerged in the recent short-term trend analysis of the HDFC Life Insurance Company stock. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around Rs. 745. At present, the stock is maintaining a crucial support level at Rs.695. Given the current market price of Rs.718, 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. 735.

4. Reliance Industries Ltd – Dongre recommends buying Reliance Industries at ₹2960 keeping the stop loss at ₹2900 for a target price of ₹3040

On the daily chart of this stock, support at the ₹2900 level has been observed, signalling a potential upward trend. Complementing this breakout, the Relative Strength Index (RSI) is still turning up, indicating increasing buying momentum. Given these technical indicators, traders can consider buying on dips, entering the stock at a lower price point. To manage risk, a stop loss at Rs. 2900 is recommended. The target price for this strategy is Rs. 3040 in the upcoming weeks, suggesting a potential gain as the stock continues its upward trajectory.

5. Larsen & Toubro Ltd – Dongre recommends buying Larsen & Toubro Ltd at ₹3680 with a Stoploss at ₹3600 for a target price of ₹3950.

On the short-term chart, this stock is forming bullish engulfing pattern, which is inherently bullish. Currently priced at Rs. 3680, this formation signals a potential upward trend. To effectively manage risk, a stop loss at Rs. 3600 is recommended. .The target price for this strategy is Rs. 3950 in the upcoming weeks. This suggests a potential gain as the stock continues its upward trajectory, backed by the bullish technical signals.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.