September 3 Stock Market Insights: Nifty 50 & Bank Nifty Outlook, Top Stocks to Buy

On September 3, the Indian stock market extended its winning streak, marking the 13th consecutive session of gains. The Nifty 50 index increased by 37 points, reaching 25,273. The BSE Sensex climbed by 194 points, closing at 82,559, while the Bank Nifty index rose by 71 points to settle at 51,422. Despite these gains, trading volumes on the NSE were modest at ₹1.11 lakh crore, and the advance-decline ratio stood at 0.98:1, suggesting a nearly balanced number of advancing and declining stocks.

Trade Setup and Market Outlook

Nifty 50: Current Trends and Projections

The Nifty 50 index is currently testing resistance at the 25,350 level. A move beyond 25,400 could open the door to a new target of 25,800. Traders should watch for a breakout above this resistance for potential further gains. Immediate support for the Nifty is positioned at 25,100; a breach of this level could signal a potential pullback. Keep an eye on volume trends and momentum indicators to gauge market strength and adjust strategies accordingly.

Bank Nifty: Analysis and Trading Strategy

The Bank Nifty index experienced early gains but faced some profit-taking, closing at 51,440. Despite a red candle formation on the daily chart, the index remains above key support levels, including the 21-day exponential moving average (DEMA) around 51,000. A “buy on dips” approach is recommended as long as the index stays above 51,000. Look for buying opportunities during price pullbacks, with potential upside targets of 51,800 to 52,000. Use technical indicators such as RSI and MACD to confirm bullish signals.

Global Market Trends

Global stock markets have shown mixed results. While major indices continue to hit record highs driven by selective buying, several sectoral indices are underperforming. Investors are awaiting key U.S. jobs data, which will influence the Federal Reserve’s interest rate decisions. This data is crucial for understanding potential impacts on global market trends and investor sentiment.

Top Stocks to Watch Today

Here are five stocks recommended by experts for today’s trading:

• Thangamayil Jewellery

• Buy at ₹2,227.15
• Target ₹2,345
• Stop Loss ₹2,145
• Thangamayil Jewellery has shown strong upward momentum, recently breaking through significant resistance levels. The stock’s bullish trend is supported by high trading volumes.

• Patanjali Foods

• Buy at ₹1,969.45
• Target ₹2,070
• Stop Loss ₹1,899
• Patanjali Foods is on an upward trajectory, with recent price action suggesting further gains. The stock’s pattern indicates potential for continued growth in the short term.

• Balkrishna Industries

• Buy at ₹2,895
• Target ₹2,995
• Stop Loss ₹2,850
• Balkrishna Industries has found solid support at ₹2,850 and shows potential for an upward move. The current price presents a good buying opportunity with a target of ₹2,995.

• ONGC

• Buy at ₹326
• Target ₹345
• Stop Loss ₹320
• ONGC has formed a bullish pattern, with potential for further gains. A buying opportunity exists at ₹326, aiming for a target of ₹345, with a stop loss at ₹320.

• Wipro

• Buy at ₹532
• Target ₹555
• Stop Loss ₹508
• Wipro has shown a breakout above ₹532, suggesting an upward trend. Traders should consider buying on dips, with a target price of ₹555 and a stop loss at ₹508.

Trading Tips

To optimize your trading strategy, stay updated with market trends and use technical analysis tools effectively. Monitor key indicators, such as RSI and moving averages, and adjust your strategies based on real-time data and market conditions.

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Disclaimer: This article offers analyst opinions and does not represent iShook Finance's views. Please consult certified financial advisors before making investment decisions.