Day trading guide for Monday: On account of dollar index climbing to 20-year high and fears of economic slowdown gaining momentum after the US inflation hit 41-year high, Indian stocks ended in red zone on four out of five sessions last week. Nifty 50 index recorded weekly loss of 1.06 per cent whereas BSE Sensex ended last week with 1.32 per cent loss. Volatility index India VIX lost 4 per cent on Friday and ended at 17.60.
According to stock market experts, small body of positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicate hammer type candle pattern (not a classical one). Normally, a formation of hammer after a reasonable upside move or decline could indicate possible trend reversal on either side. Hence, one may expect upside bounce from here.
Day trading guide for stock market today
On day trading guide for Nifty today, Chinmay Barve, Head — Technical and Derivative Research at Profitmart Securities said, “In last two trading sessions; Nifty has managed to bounce back from its crucial support zone of 15,800 to 15,850 levels. However the Nifty has strong resistance placed at 16,250 to 16,300 zones, which needs to be surpassed for any decisive directional up move to take place.”
“The positive chart pattern like higher tops and bottoms is intact and the swing low of Thursday at 15,858 could now be considered as a new higher bottom of the sequence. The said higher low was formed at the key lower support of ascending trend line around 15,850 levels (connected from the swing lows of 17th June and 1st July). Hence, this could mean chances of more upside in the short term,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Explaining the Nifty Bank chart pattern, Mehul Kothari, AVP — Technical Research at Anand Rathi said, “Nifty Bank index slightly under performed the benchmarks by falling around 1.25 per cent and closing below 35,000 mark. Previously we discussed that going ahead; 35500 – 36000 zone would be a real test for the bulls since we have a placement of 200 day moving averages also there. In line with the view; index took turn from 35500 and hence we maintain our stance. Only a move above 35500 might bring in some optimism in the markets. On the downside; the trigger point could be 34300 which is the gap area and a breach of the same could bring in some softness or profit booking in the banking stocks.”
Day trading stocks
Sharing intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Mehul Kothari of Anand Rathi and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended 6 shares to buy today.
Sumeet Bagadia’s intraday stocks for today
1] Chambal Fertilisers: Buy at CMP, target ₹320 to ₹325, stop loss ₹290
2] Tata Power: Buy at CMP, target ₹232 to ₹235, stop loss ₹220
Mehul Kothari’s day trading stocks to buy today
3] Godrej Properties: Buy around ₹1343, target ₹1380, stop loss ₹1310
4] Deepak Fertilisers: Buy around ₹638, target ₹655, stop loss ₹628
Avinash Gorakshkar’s stocks to buy today
5] Tata Steel: Buy at CMP, target ₹970, stop loss ₹880
6] Bharat Forge: Buy at CMP, target ₹705, stop loss ₹635.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.