Stock market today: Trade setup for Nifty 50 to India VIX, five stocks to buy or sell on Wednesday — June 5

Stock market today: Following the sell-off trigger after the disappointing Lok Sabha Election results , the Indian stock market crashed heavily on Tuesday. The Nifty 50 index tumbled to its worst-ever session in over four years. The 50-stock index crashed 1379 points and finished at 21,884. The BSE Sensex tanked 4,389 points and ended at 72,079. The Bank Nifty index nosedived 4,051 points and closed at 46,928. Cash market volumes on the NSE rose to a record high of ₹2.71 lakh crore. The broad market indices fell more than the frontline Indian indices even as the advance-decline ratio touched a low of 0.10:1 – the lowest since March 13, 2024.

Trade setup on Wednesday

On the outlook for Nifty today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty is highly volatile with negative bias. Immediate support is placed for Nifty around 21250 levels (20-day EMA). Once election result volatility settles down, the market could find direction for the near term. There is a possibility of an upside bounce in the Nifty from near 21,250 to 21,000 levels."

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — June 5

On the outlook for the Bank Nifty today, Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, said, "Bank Nifty has also broken down from the rising channel, indicating a change in trend. We expect the Bank Nifty to correct towards 46150 – 44000, which is the 200-day moving average and the 38.2% Fibonacci retracement level of the rise from 32300 – 51100. On the upside, 48600 – 49200 shall act as an immediate hurdle."

Expecting the volatility in the Indian stock market to continue, Sumeet Bagadia, Executive Director at Choice Broking, said, " The India VIX Index has broken the hurdle placed at 25, and the index may touch 28 in the near term. So, the bumpy ride on Dalal Street may continue for a few more sessions."

On the outlook for the Indian stock market today, Ajay Menon, MD & CEO of Broking & Distribution at Motilal Oswal, said, "While the market volatility may continue in the near term, retail investors should take this correction as an opportunity to accumulate quality names in 3-4 tranches. Over the next few days, the narrative around government formation and RBI monetary policy would take centre stage."

Lok Sabha Election results effect

On how the Lok Sabha Election 2024 results would impact Dalal Street on Wednesday, Amnish Aggarwal, Director of Research at Prabhudas Lilladher, said, "Indian electorate has given a fractured mandate in 2024 Lok Sabha elections after it gave BJP absolute majority in 2014 and 2019 elections which took markets by surprise resulting in ~6% cut in NIFTY. Although BJP failed to get an absolute majority, NDA victory in an environment of drought (last year), higher global inflation, and huge prevalence of freebies and loan waivers seems a commendable task. PM Modi is likely to be the only Indian leader after Pt. Nehru to win mandate thrice. We believe portfolio allocations and future policies of the NDA Govt will be key determinants of market movements. Severe jolt to BJP in Uttar Pradesh (new PDA social engineering), Maharashtra (fractured parties) and West Bengal will keep tricky reforms regarding PSU divestment, GST, labour laws, agriculture, modern retail/ Ecom at bay."

Buy or sell stock ideas by experts

Regarding stocks to buy today, stock market experts — Sumeet Bagadia of Choice Broking and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended five stocks to buy or sell on Wednesday.

Sumeet Bagadia's stocks to buy today

1] Dabur: Buy at ₹578.20, target ₹611, stop loss ₹560.

Dabur share price is currently trading at ₹578.2. After minor falls and sideways consolidation, the stock has lately broken the neckline levels of ₹577 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹611 levels. On the downside, considerable support is evident at nearly ₹560.

2] Heritage Foods: Buy at ₹455.45, target ₹480, stop loss ₹440.

Heritage Foods share is exhibiting strong bullish momentum, currently trading at a 52-week high of ₹479.80. The recent breakout above the crucial resistance at ₹450 levels is a significant technical development supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Ganesh Dongre's buy or sell stocks

3] Marico: Buy at ₹613, target ₹645, stop loss ₹598.

We have seen significant support in this stock, around ₹598. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹613 price level, which may continue its rally till its next resistance level of ₹645. So traders can buy and hold this stock with a stop loss of ₹598 for the target price of ₹645 in the near term.

4] McDowell-N or United Spirits: Buy at ₹1204, target ₹1245, stop loss ₹1175.

In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹1245. So, holding the support level of ₹1175, this stock can bounce toward ₹1245 in the short term. Hence, the trader can use a stop loss of ₹1175 for the target price of ₹1245.

5] Tata Consumer: Buy at ₹1087, target ₹1125, stop loss ₹1065.

We have seen significant support in this stock, around ₹1065. At the current juncture, the stock has again seen a reversal price action formation at the ₹1087 price level, which may continue its rally until its next resistance level of ₹1125. So, traders can buy and hold this stock with a stop loss of ₹1065 for the target price of ₹1125 in the near term.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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