Trade Setup, Thursday September 12: Key Factors To Fuel Sentiments In Sensex, Nifty; 3 Stocks To Buy

Indian stock market is expected to consolidate at a higher tone, with a key focus on inflation data, the Trump-Harris debate, and the upcoming policy of the ECB on Thursday. In the early trade, Gift Nifty signalled a positive opening, amid gains in Asian shares. US stocks overnight also surged despite lower-than-expected US inflation data.

On September 12, Nifty is expected to support around 24,800-25,000. For support, Sensex ranges between 81,100 with the resistance of 82,000. Experts recommend investors consider a stock-specific approach for investment while keeping an eye on global trends.

Yesterday, Indian equity markets closed off their highs, with the Nifty slipping below the 24,950 mark and the Sensex dropping 398 points to end at 81,523. The broader market saw significant declines, with midcap stocks and sector-specific indices struggling through the latter part of the trading session.

Day Trade Guide On September 12:

Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher said, "Investors may consider adopting a stock-specific approach, focusing on sectors displaying strength, while closely monitoring any breakout levels for broader market movements."

Siddhartha Khemka, Head - of Research, Wealth Management, Motilal Oswal Financial Services is expecting the market to consolidate at a higher zone ahead of key events. Rate-sensitive sectors are expected to be in focus along with stock-specific action.

Notably, in India, CPI inflation and IIP data will be announced later on Thursday. As per Vinod Nair, Head of Research, Geojit Financial Services, "domestic inflation is expected to remain stable."

Technical Outlook On Key Indices As per Prabhudas Lilladher:

Nifty 50: Nifty has witnessed some heavy profit booking from the 25100 zone to slip down with a weak candle pattern indicating a lower top formation once again to maintain a cautious approach in the coming sessions. The index would have the crucial zone of 24800 levels which needs to be sustained to maintain the overall bias intact and, on the upside, would need to decisively breach above the 25150 zone to confirm the continuation of a positive trend.

Bank Nifty: BankNifty slipped down from the 51400 levels to form another lower top pattern on the daily chart to slightly weaken the bias and further has 50,400 zone as the crucial support of the 100 period MA which needs to be sustained. On the upper side, the 51700 level is acting as a tough barrier and only a decisive breach shall trigger for fresh upward move.

Overall, Prabhudas stated, "The support for the day is seen at 81100/24800 levels while the resistance would be seen at 82000/25100 levels. Bank Nifty would have a daily range of 50700-51500 levels."

Stocks To BUY:

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has recommended buying three stocks on September 12, 2024. These are:

- BUY CG POWER cmp 689.75 Stop Loss 675 Target 727

- BUY BEL cmp 288 Stop Loss 282 Target 305

- BUY KALYAN JEWELLERS cmp 656.80 Stop Loss 642 Target 690

Also, a total of 20 stocks including large-caps, mid-caps, and small-caps are scheduled to turn ex-dividend on Thursday, September 12, 2024. The stocks are in focus for dividend payout as low as Rs 0.10 per share to a maximum of Rs 90 per share. These stocks have also gained by 1% to 95% in 2024 so far. September 12 is also the record date for determining eligible shareholders for the dividends by these stocks. Some of the renowned stocks are SJVN, VST Tillers, Skipper, and Nirlon among others.