The Indian stock market demonstrated robust performance on Tuesday, buoyed by positive global cues. The Nifty 50 and Sensex both closed higher, with the Sensex gaining 378 points (0.47%) to end at 80,802.86, while the Nifty 50 rose by 126 points (0.51%) to finish at 24,698.85. This upward movement reflects a favorable sentiment in the market driven by international developments and investor optimism.

Trade Setup for Wednesday

Nifty 50 Outlook:

Looking ahead, Osho Krishan, Senior Analyst at Angel One, suggests that the Nifty 50 is likely to face resistance in the range of 24,800-24,850. A breakthrough in this zone could lead to further challenges. Conversely, on the downside, the 24,600-24,500 range is expected to serve as support, with the 20-day EMA at 24,400 also acting as a crucial support level. These levels are significant for short-term traders to monitor for potential price movements.

Bank Nifty Outlook:

For the Bank Nifty, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., reports that the index opened with a gap up and witnessed continuous buying interest. It closed at 50,803, with a high of 51,026. The formation of a green candle on the daily chart indicates strength, and maintaining levels above 50,770 could push the index towards the 51,200-51,500 zone. This suggests a bullish outlook for the Bank Nifty, making it a key area to watch.

Stocks to Buy Today

Sumeet Bagadia's Recommendations:

Kotak Bank: Buy at ₹1,805.65, target ₹1,915, stop loss ₹1,750

Kotak Bank has recently broken out of a Descending Triangle pattern, indicating a strong bullish trend. With an RSI of 55.7 and a favorable position above key moving averages, buying at ₹1,805.65 with a stop loss at ₹1,750 and targeting ₹1,915 presents a compelling opportunity.

Muthoot Finance: Buy at ₹1,875, target ₹2,030, stop loss ₹1,805

Muthoot Finance shows a long-term uptrend with a strong bullish pattern. The stock is trading above its key moving averages, and the RSI of 57.38 suggests increasing buying momentum. Recommended entry is at ₹1,875, with a target of ₹2,030 and a stop loss at ₹1,805.

Ganesh Dongre's Recommendations:

United Spirits Ltd: Buy at ₹1,408, target ₹1,465, stop loss ₹1,370

United Spirits Ltd is exhibiting a bullish reversal pattern, suggesting potential gains towards ₹1,465. The stock maintains a critical support level at ₹1,370, making it a viable buying opportunity at ₹1,408.

Tata Power: Buy at ₹422, target ₹438, stop loss ₹410

Tata Power has shown a breakout at ₹422, indicating an upward trend. With an RSI turning upwards, buying on dips with a stop loss at ₹410 and targeting ₹438 aligns with the stock's bullish outlook.

Conclusion

The Indian stock market's positive movement reflects a favorable environment for investors, driven by global factors. The Nifty 50 and Bank Nifty show promising trends with specific resistance and support levels to watch. For individual stock investments, the recommended buys present attractive opportunities based on their technical setups and current market conditions. Investors should keep an eye on these indicators and adjust their strategies accordingly to maximize gains in the evolving market landscape.

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