Trade Setup for Today: Six Stocks to Buy or Sell on Tuesday

The Indian stock market is set to start strong today, following trends in the Gift Nifty. The Gift Nifty is trading about 70 points higher than the previous closing of the Nifty futures, at 22,610.

On Saturday, during a special trading session, the Nifty 50 closed above the 22,500 mark, with domestic market indices showing modest gains.

• Nifty 50: Closed 35.90 points (0.16%) higher at 22,502.00
• Sensex: Increased by 88.91 points (0.12%) to close at 74,005.94

The stock market was closed on Monday due to the Lok Sabha elections in Mumbai.

Trade Setup for Tuesday

The Nifty 50 remains within its trading channel and has closed above 22,500 for the first time in a few days, says Rupak De, Senior Technical Analyst at LKP Securities. However, the daily chart shows a small-bodied candle, which doesn’t provide clear guidance on future price movements. There is significant activity around the 22,500 mark in both call and put options, indicating a key inflection point. Traders should be cautious during the first hour of trading to confirm any directional changes. Support is at 22,400, and a strong upward move could push the index towards 22,600 and beyond.

Stock Ideas for Today

Experts Ganesh Dongre from Anand Rathi and Shiju Koothupalakkal from Prabhudas Lilladher have suggested six stocks to buy or sell today. Here are their recommendations:

Ganesh Dongre’s Stock Picks for Today

Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi, recommends the following stocks:

1. Tata Motors:
   • Buy at: ₹954Target: ₹985Stop Loss: ₹930
   Tata Motors has strong support around ₹930. Recently, the stock has shown a reversal at ₹954, suggesting it might rise to the next resistance level of ₹985. Traders can buy and hold this stock with a stop loss at ₹930, aiming for the target of ₹985 in the coming weeks.
   
2. Indian Energy Exchange:
   • Buy at: ₹159Target: ₹172Stop Loss: ₹152
   The stock has shown a bullish reversal pattern in the short term. It might rise to ₹172 while maintaining support at ₹152. Traders can buy this stock with a stop loss at ₹152, aiming for the target of ₹172.
   
3. Vedanta:
   • Buy at: ₹462Target: ₹482Stop Loss: ₹450
   Vedanta has strong support around ₹450. Recently, it has shown a bullish reversal at ₹462, suggesting it might rise to the next resistance level of ₹482. Traders can buy and hold this stock with a stop loss at ₹450, aiming for the target of ₹482 in the coming weeks.

Shiju Koothupalakkal’s Stock Recommendations

Shiju Koothupalakkal from Prabhudas Lilladher suggests the following stocks:

4. West Coast Paper Mills:
   • Buy at: ₹651.40Target: ₹680Stop Loss: ₹637
   After a short correction, West Coast Paper Mills found support around ₹612 and is now showing signs of a pullback. It has moved above the 50-day EMA level of ₹640, indicating a positive bias. The RSI also suggests a buy signal. Therefore, buying at ₹651.40 with a target of ₹680 and a stop loss at ₹637 is recommended.
   
5. Fertilisers and Chemicals Travancore:
   • Buy at: ₹696.30Target: ₹730Stop Loss: ₹682
   This stock has recently moved past the important 200-period moving average and has also crossed the 50-day EMA level of ₹693. The RSI is showing strength, indicating further potential for a rise. Buying at ₹696.30 with a target of ₹730 and a stop loss at ₹682 is suggested.
   
6. Royal Orchid Hotels:
   • Buy at: ₹379.60Target: ₹400Stop Loss: ₹381
   After a correction, Royal Orchid Hotels has bottomed out around ₹360 and is showing signs of improvement. The RSI indicates a trend reversal and potential for further upside. Therefore, buying at ₹379.60 with a target of ₹400 and a stop loss at ₹381 is recommended.