Stock Market Today: Key Trade Setup and 5 Stocks to Buy on Wednesday, October 16

The Nifty 50 continued its correction phase on Tuesday, closing 0.28% lower at 25,057.35. Similarly, the Sensex fell by 0.19% to close at 81,820.12. However, the Bank Nifty index gained 0.17%, ending at 51,906.00, with realty and FMCG stocks leading the gains, while auto and metal sectors lagged. Mid and small-cap stocks performed better than the broader market.

Trade Setup for Wednesday

Nifty continues to struggle, forming a bear candle on October 15. According to Deepak Jasani from HDFC Securities, the Nifty is expected to stay within the range of 25,234 to 24,832 in the near term. Bank Nifty, supported by ICICI Bank, closed above its 40-day average and is expected to move towards 52,500, with support shifting to 51,400-51,500, says Jatin Gedia from Sharekhan.

Global Market Outlook

Asian markets showed mixed results, with Chinese stocks falling. European shares remained largely unchanged as oil prices dipped due to reports that Israel would not target Iranian energy sources. While broking stocks like Angel One saw gains, weak results from Reliance dented investor sentiment.

5 Stocks to Buy Today (Wednesday, October 16)

1. Ramkrishna Forgings Ltd

• Buy Price: ₹1,047.2
• Target: ₹1,125
• Stop Loss: ₹1,015
  Ramkrishna Forgings is showing strong bullish momentum with consistent higher highs. A breakout above the ₹1,060 resistance could push the stock towards ₹1,125.

2. BF Utilities Ltd

• Buy Price: ₹1,112.1
• Target: ₹1,177
• Stop Loss: ₹1,075
  BF Utilities is trading at an all-time high, with a significant breakout above ₹1,065. The stock is expected to continue its upward trend with strong trading volumes.

3. Grasim Industries Ltd

• Buy Price: ₹2,735
• Target: ₹2,850
• Stop Loss: ₹2,650
  Grasim Industries has shown a bullish reversal, with strong support at ₹2,650. A rise towards ₹2,850 is expected in the short term.

4. LIC Housing Finance Ltd

• Buy Price: ₹626
• Target: ₹660
• Stop Loss: ₹605
  LIC Housing Finance is experiencing a bullish reversal, with a key support level at ₹605. The stock is poised to reach ₹660.

5. ITC Ltd

• Buy Price: ₹498
• Target: ₹513
• Stop Loss: ₹490
  ITC has formed a bullish reversal pattern, with support at ₹490. The stock is expected to climb towards ₹513.

Conclusion

Although the markets are volatile, these five stocks have promising technical patterns suggesting potential gains. Investors are advised to consider these recommendations with proper stop-loss strategies.