Stock market today: Trade setup for Nifty 50 to VIX today; 5 stocks to buy or sell on February 11

Stock Market Today: The market consolidation persisted as the benchmark indices, Nifty 50 and S&P BSE Sensex, closed at 23,603.35 and 78,058.16, registering declines of 0.39 per cent and 0.27 per cent, respectively, on Thursday. Meanwhile, Bank Nifty edged up by 0.08 per cent to settle at 50,382.10.

However, most sectors, except IT, ended in the red, with Realty, FMCG, and Auto being the major losers. The broader markets also declined, slipping 0.3 per cent and 1.26 per cent, respectively.

Trade Setup for Tuesday

Speaking on the Nifty50 outlook, Rupak De, Senior Technical Analyst at LKP Securities, “The decline continues in the headline index as it has been falling after forming a lower top on the daily chart. Sentiment has weakened further after Nifty dropped below the 21EMA. Additionally, the RSI has entered a bearish crossover. In the short term, the trend may worsen below 23,350, with the potential to fall toward 23,000 if it sustains below this level. On the higher end, resistance is seen at 23,550.”

Meanwhile, on the Bank Nifty outlook, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, said, “Similarly, the Bank Nifty opened with a gap down, saw volatility, and finally settled the day on a negative note at 49,981 levels. Technically, the Bank Nifty has formed a small red candle near its previous breakout point of 49,650. As long as Bank Nifty remains above the support level of 49,650, a buy-on-dips strategy should be implemented for Bank Nifty. On the upside, 50,600 will act as a stiff resistance for Bank Nifty in the short term.”

These include Varroc, Signature, IRCTC, Bata India, and HDFC Life.

Stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stock picks for today. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, suggested three stocks.

Sumeet Bagadia’s stock recommendations today

1] Varroc – Bagadia recommends buying Varroc ₹557.35 Stoploss at ₹538 for a target price of ₹596.

Varroc is currently trading at ₹557.35, exhibiting strong bullish momentum after decisively breaking above the major resistance level of ₹550. The stock recently completed a breakout from a short-term falling trendline pattern, supported by a bullish hammer candle formation, indicating a potential reversal from a key support zone. A sustained move above the crucial resistance level of ₹565 would further validate the bullish trajectory, making it an ideal entry point for long positions.

The Relative Strength Index (RSI) stands at 48.31, reflecting a healthy uptrend with room for further growth. Additionally, Varroc has broken out above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), and a confirmed close above these levels would further strengthen its positive trend.

Traders may consider entering the stock at the current price of ₹557.35, with a stop loss at ₹538 and a target of ₹596. While the technical indicators present a compelling opportunity for potential gains, traders should remain mindful of short-term volatility and adhere to proper risk management strategies to navigate this trade effectively.

2] Signature– Bagadia recommends buying Signature at ₹1325.90, keeping Stoploss at ₹1280 for a target price of ₹1419.

SIGNATURE is currently trading at ₹1325.9, having recently rebounded from a key support zone. The stock has formed a strong bullish candlestick pattern and successfully broken out above the ₹1300 resistance level on the daily timeframe. This breakout, accompanied by rising trading volumes, indicates strong buying interest and further validates the reversal pattern. In the short term, the stock appears poised to target ₹1419.

The Relative Strength Index (RSI) stands at 62.98, reflecting a healthy uptrend with room for further growth. Additionally, SIGNATURE is trading above its 20-day, 50-day, and 200-day EMAs, reinforcing bullish sentiment from both short-term and long-term perspectives. Holding above the critical ₹1352 resistance level could provide an ideal entry point for long positions.

Traders may consider entering at the current price of ₹1325.9, targeting ₹1419, with a stop-loss at ₹1280 to manage risk effectively. While the technical setup appears promising, traders should remain mindful of potential short-term volatility and implement strong risk management strategies.

Ganesh Dongre’s stocks to buy today

3] IRCTC – Dongre recommends buying IRCTC at ₹775 , keeping Stoploss at ₹765 for a target price of ₹795.

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests the possibility of a temporary retracement in the stock’s price, potentially reaching around Rs. 795. The stock is currently maintaining a crucial support level at Rs.765. Given the current market price of Rs.775, a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of Rs. 795.

4] Bata India – Dongre recommends buying Bata India at ₹1341 , keeping Stoploss at ₹1320 for a target price of ₹1370.

We have seen major support in this stock, around ₹1320. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹1341 price level. It may continue its rally until its next resistance level of ₹1370, so traders can buy and hold this stock with a stop loss of ₹1320 for the target price of ₹1370 in the upcoming weeks.

5] HDFC Life: Dongre recommends buying HDFC Life at ₹633 , keeping Stoploss at ₹615 for a target price of ₹655.

A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis. This technical pattern suggests that the stock’s price could temporarily retrace, possibly to around ₹655. Currently, the stock is holding a crucial support level at ₹615.

Given this scenario, the stock could rebound towards the Rs.655 level in the near future. Traders are advised to consider taking a long position, with a strategic stop loss set at Rs.615, to manage risk effectively. The target price for this trade is Rs.695, reflecting the anticipated upward movement based on the identified technical.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.