Day trading guide for Friday: Dragged down by weak Asian sentiments, Indian stock market ended in red territory on Wednesday. NSE Nifty lost 162 points and closed at 174,038 whereas BSE Sensex tumbled 537 points and closed at 56m819 levels. Nifty Bank index dipped 375 points and closed at 36,028 mark.
Volumes on the NSE were a little higher than the recent average, but the advance decline ratio was severely down into the negative. BSE Mid-cap index fell 0.88 per cent while Small-cap index fell 0.61 per cent. According to stock market experts, current pattern indicate indecision in the market participants at the lower levels.
Day trading guide for stock market today
Speaking on intraday trading strategy in regard to Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The market is showing choppy movement of one day up and down type formations. The overall chart pattern indicate that Nifty is now preparing for a big movement. The overall chart pattern is weighing high on the downside. The support for Nifty 50 indext at 16,800 seems to be a crucial base of long positions. Immediate resistance for NSE Nifty is placed at 17,150 levels.”
Ruchit Jain, Lead Research at 5paisa.com said, “The volatility in the global markets has led to a lot of uncertainty for our markets too. The Nifty 50 index index has traded with moves on both sides within the broad range of 16,800 to 17,400 in last few sessions. In this recent correction, 16,800 to 16,900 has been a crucial support range as Nifty has managed to pull back higher twice from that range. Also, this coincides with the ‘200 DEMA’ and the 50% retracement mark. On the flipside, the index doesn’t seem to be showing enough strength to show a sustained up move as pullbacks are getting sold into.”
“On the short term charts, this recent movement has led to formation of a ‘Triangle’ pattern on the hourly time frame and hence, a breakout from this is required for any directional move. Being the monthly expiry day, it would be interesting to see if this breakout happens in the coming session which could then set the momentum for the coming May series. For the expiry day, 17000 put option have highest open interest outstanding indicating that option writers are not expecting expiry below this level. If market sustains below this during the day, then there would be tug-of-war which could lead to higher intraday volatility,” Ruchit Jain added.
Advising traders to remain light and avoid aggressive positions, Ruchit Jain of 5paisa.com said, “From a short term perspective, the above mentioned ‘Triangle’ gives a range of 16825-17200 and one should look for trading opportunities only post a breakout from this range. A move above 17200 will then lead to a short term pullback towards 17600 whereas a breach below 16825 could lead a sharp sell-off. Hence, until there’s a breakout from the range of 16825-17200, it is advisable to stay light and avoid aggressive positions.”
Day trading stocks
Sharing intraday stocks for today, stock market experts — Rajesh Bhosale, Technical Analyst at Angel One Ltd; Anuj Gupta, Vice President — Research at IIFL Securities; Mehul Kothari, AVP – Technical Research at Anand Rathi Shares & Stock Brokers and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended 6 stocks to buy today.
1] Apollo Tyres: Buy at ₹210.50, target ₹223, stop loss ₹204
2] TVS Motor: Buy at ₹686.60, target ₹716, stop loss ₹671
Anuj Gupta’s stock of the day
3] Axis Bank: Buy at CMP, target ₹815, stop loss ₹738
Mehul Kothari’s stock pick for today
4] Endurance Technologies: Buy around ₹1225 to ₹1235, target ₹1350, stop loss ₹1160
Avinash Gorakshkar’s intraday stocks for today
5] Jindal Steel: Buy at CMP, target ₹580, stop loss ₹520
6] Marico Limited: Buy at CMP, target ₹560, stop loss ₹515.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.