Nifty 50 Trade Setup: Market Faces Challenges Amid Iran-Israel Conflict—Top 5 Stocks to Watch on October 4

On Thursday, the Indian stock market faced significant pressure, with the Nifty 50 closing at 25,250, down 2.12% or 546 points—its largest single-day drop since early August. The S&P BSE Sensex also fell 1,769 points (2.10%) to close at 82,497.10. All major sectors were down, particularly Nifty Realty, Auto, Financial Services, and Oil & Gas. The Bank Nifty index ended at 51,845.20, down over 2% as well.

Trade Setup for Friday

With the Nifty breaking several support levels, including the 20-day exponential moving average (DEMA) around 25,580 and the trendline support near 25,350, further declines are expected. Ajit Mishra from Religare Broking sees 25,000-25,150 as the next support zone, while any bounce may be limited to 25,450-25,600.

Bank Nifty, which had been on an upward trend, is now correcting, with Jatin Gedia from Sharekhan predicting a fall towards 49,700, which was its low in August. Key resistance lies between 52,600 and 52,700.

Global Market Outlook

Asian markets showed mixed results amid the ongoing Iran-Israel conflict, with Chinese markets performing well while others like Hong Kong faced corrections. European markets also remained under pressure. Investors are advised to stay cautious and keep an eye on upcoming quarterly earnings and the Reserve Bank of India’s policy decisions. Vikram Kasat, Head of Advisory at Prabhudas Lilladher, emphasizes watching global developments and crude oil price trends as key market influences.

Top Stocks to Watch

Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager at Anand Rathi, have recommended several stocks for today:

1. Pitti Engineering Ltd
   • Buy at ₹1,366.85
   • Stop Loss: ₹1,325
   • Target Price: ₹1,460
   • The stock is in an uptrend and above key moving averages.
2. Sarda Energy & Minerals Ltd
   • Buy at ₹491.95
   • Stop Loss: ₹472
   • Target Price: ₹520
   • The stock shows a pattern of higher highs and higher lows, indicating potential growth.
3. InterGlobe Aviation Ltd (IndiGo)
   • Buy at ₹4,716
   • Stop Loss: ₹4,650
   • Target Price: ₹4,950
   • A bullish reversal pattern suggests an upward movement.
4. Maharashtra Seamless Ltd
   • Buy at ₹633
   • Stop Loss: ₹620
   • Target Price: ₹655
   • The stock shows upward momentum and increasing buying interest.
5. Tata Communications Ltd
   • Buy at ₹2,145
   • Stop Loss: ₹2,100
   • Target Price: ₹2,300
   • A bullish engulfing pattern indicates a potential upward trend.

Conclusion

With the market facing challenges due to global tensions, investors should remain vigilant while exploring opportunities in specific stocks that show potential for growth.