Day trading guide for today: After one day decline, Indian stock market bounced back on Thursday and closed in positive territory. Nifty 50 index gained 80 points and closed at 17,736 whereas BSE Sensex surged 212 points and closed at 59,756 levels. Bank Nifty finished 176 points higher at 41,299 mark. Among sectors, realty. oil & gas, metals and power indices rose the most while IT index fell the most. Advance decline ration finished positive at 1.23:1.
According to stock market experts, Nifty could now attempt to test the recent highs of 17,812 to 17,919 levels. Once these levels are crossed, the Nifty looks set to move higher towards the previous intermediate highs of 18,096. The index could witness a mild correction in the very near term. It is important that the Nifty holds above the immediate supports of 17,607 to 17,505 levels for the uptrend to continue.
Speaking on technical outlook for Nifty 50 index, Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities said, "While the Nifty remains in a short term uptrend and looks set to move higher towards the previous intermediate highs of 18,096 levels. But, it is important that on any mild corrections the index holds above the immediate supports of 17,607 to 17,505 mark for the uptrend to continue."
On intraday trading tips that one should know, Ruchit Jain, Lead Research at 5paisa.com said, "In last three trading sessions, the Nifty has traded within the range of 17600-17800, but the crucial support are intact with market breadth being positive. The Dollar Index, has also corrected in last couple of sessions and is back to below 110 level which is positive for the equity markets. The RSI oscillator on the daily as well as the hourly chart is indicating a positive momentum."
Unveiling day trading strategy, Ruchit Jain of 5paisa.com said, "Till, Nifty 50 index keeps the support intact, or till there’s change in data traders should continue to trade with a positive bias and look for stock specific buying opportunities."
On Nifty call put option ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, "Nifty weekly expiry option chain witnesses PE writers actively adding their positions at various strikes of more than 55 thousand contracts, but highest fresh exposure seen at 17700 strike - more than 40 thousand contracts. CE writers standing tall at 18400CE levels - over 80 thousand contracts, with high additions of over 70 thousand contracts as well. PCR_OI at 17700 being just below 1, is important to watch for the direction ahead."
"Bank Nifty option chain on weekly basis, reflects on PE writers building positions at 40000 strike - overall more than 40 thousand contracts, with CE writers adding exposure at 41500 strike, followed by 43000 strikes - fresh additions of more than 20 thousand contracts each, which reflects on the immediate range in between 40000-41500 zones for the Index, with extended targets of 43000," said Shilpa Rout of Prabhudas Lilladher.
On intraday stocks for today, share market experts — Sumeet Bagadia, Executive Director at Choice Broking, Anuj Gupta, Vice President — Research at IIFL Securities, Ravi Singhal, CEO at GCL Securities and Manoj Dalmia, Founder & Director at Proficient Equities — recommended 6 stocks to buy or sell today.
1] Sun Pharma: Buy at CMP, target ₹1030 and ₹1050, stop loss ₹990
2] Tata Steel: Buy at CMP, target ₹108-110, stop loss ₹100
3] Coal India: Buy at CMP, target ₹265, stop loss ₹225
4] BEL: Buy at CMP, target ₹115, stop loss ₹102
5] DLF: Buy at ₹382, target ₹394 and ₹400, stop loss ₹377
6] Adani Ports: Buy at ₹832, target ₹837, stop loss ₹828.50.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.