Day trading guide for today: Following strong global cues on growing expectations that US interest rates will rise at a slower pace this year, Indian stock market ended in positive territory on second day in a row on Tuesday session. NSE Nifty added 35 points and finished at 18,232, BSE Sensex surged 126 points and closed at 61,294 whereas Nifty Bank index shot up 222 points and ended at 43,425 levels. Volumes on the NSE are yet to see a pick up. Advance decline ratio fell but was above 1:1 at 1.36:1. Non-bank financials had a field day on rotational buying.
According to stock market experts, Nifty has shown upside move with minimal intraday range that signals lack of conviction among bulls and bears. However, they also maintained that positive bias still prevails on Dalal Street as expectations are high that US Fed interest rate will be increased at a slower pace. They went on to add that global markets including Dalal Street is in buzz that China’s Covid-19 infection might have peaked.
Day trading strategy for Wednesday
Speaking on intraday trading tips, Deepak Jasani, Head of Retail Research at HDFC Securities said, “Nifty has shown gradual upside move over the past two days with minimal intra day range. This denotes lack of conviction on either side by the participants though positive bias prevails for the time being. Nifty moving above 18,265 could result in a faster upside move. On the other hand, Nifty breaching below 18,080 could lead to fresh downside move.”
Jasani went on to add that global stock markets rose on Tuesday amid growing expectations that US interest rates will rise at a slower pace this year and on optimism that China’s Covid infections might have peaked.
Unveiling day trading strategies, Ruchit Jain, Lead Research at 5paisa.com said, “The momentum reading on the Nifty daily chart is in Buy mode and the positive market breadth also hints at a bullish bias for the short term. Looking at the data, it seems that we may not see a significant momentum in the index in the near term but stock specific moves might give better trading opportunities. Hence, traders are advised to focus to stock specific moves from a trading perspective.”
Nifty call put option data
Speaking on Nifty call put ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “Nifty weekly expiry option chain witnesses PE writers adding their positions of nearly 2 lakh contracts each at 18200 straddle, which again hints on the importance of the level. CE writers maximum fresh exposures lies at 19200 strike of nearly 47 thousand contracts, which also hints on the positive aspect of the bullish sentiment floating in now. PCR_OI at 18200 is close to 1, which is important to monitor and look at the possibilities of the direction going ahead.”
Bank Nifty call put option data
“Bank Nifty option chain on weekly basis reflects 43000PE holding the most exposure of a lakh contract, with 43300PE/43400PE strikes also adding aggressive fresh built-up. CE writers adding positions of more than a contract at 43500, which posses as the immediately hurdle for the index,” Rout said.
Day trading stocks to buy today
Sharing intraday stocks for today, share market experts — Sumeet Bagadia, Executive Director at Choice Broking and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended 4 stocks to buy today.
Sumeet Bagadia’s intraday stocks for today
1] Titan Company: Buy at CMP, target ₹2660 to ₹2680, stop loss ₹2550
2] Zydus Life: Buy at CMP, target ₹435 to ₹440, stop loss ₹414
Ganesh Dongre’s stocks to buy today
3] Sun Pharma: Buy at ₹1010, target ₹1045, stop loss ₹990
4] Tata Steel: Buy at ₹119, target ₹130, stop loss ₹114.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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