Day trading guide for Tuesday: After showing sharp upside move in the last couple of sessions, Indian stock market witnessed profit booking at the highs on Monday session. Nifty 50 index ended 169 points lower at 17,117 levels whereas BSE Sensex dipped 571 points and closed at 57,292 levels. Bank Nifty index shed 410 points and closed at 36,018 levels on Monday.
According to stock market experts, current trade pattern at Dalal Street indicate a formation of bearish engulfing type candle pattern at the highs (not a classical one). Normally, such bearish pattern formations after a reasonable upside moves could signal impending trend reversal on the downside. But, the market has witnessed an excellent upside breakout of the important cluster resistance of around 16,800 to 17,000 levels in last week. We also observe a formation of higher highs and lows during its recent upside bounce, which indicate a strength of an upside bounce. Hence, these market action signal chances of limited decline down to 17,000 levels in the next few sessions, before showing another round of upside bounce from the higher bottom.
Day trading guide for stock market today
Speaking on day trading guide for Nifty today; Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The profit booking of Monday seems to have not damaged the recent uptrend of the market. There is a possibility of upside bounce in Nifty from near the crucial lower support of 17,000 levels in the next 1-2 sessions.”
Expecting high volatility in the market; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “market is expected to remain highly volatile and hence traders are advised to know their important levels, especially in regard to Nifty and Nifty Bank. Nifty today is expected to move in a broader range of 16,920 to 17,350 the 50-stock index is expected to trade in short range of 17,000 to 17,300 levels. Similarly, Nifty Bank index is expected to move in short range of 35,700 to 36,600 levels whereas its broader range would be 35,450 to 36,750 levels.”
Unveiling intraday trading tips for stock market today; Ruchit Jain, Lead Research at 5paisa.com said, “Traders should look out for stock specific opportunities for short term trading and trade with proper risk management.”
Day trading stocks
Sharing day trading stocks for today’s session, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Avinash Gorakshkar of Profitmart Securities and Anuj Gupta, Vice President at IIFL Securities — recommended 6 stocks to buy today.
Sumeet Bagadia’s day trading stocks to buy
1] Gujarat State Petronet Ltd or GSPL: Buy at CMP, target ₹280 and ₹295, stop loss ₹255
2] National Aluminium Company or NALCO: Buy at CMP, target ₹126 to ₹130, stop loss ₹118
Avinash Gorakshkar’s day trading stocks for today
3] Vedanta: Buy at CMP, target ₹418, stop loss ₹390
4] Bata India: Momentum buy at CMP, target ₹2000, stop loss ₹1920
Intraday stocks for today by Anuj Gupta
5] Coal India: Buy at CMP, target ₹195, stop loss ₹172
6] Tata Motors: Buy at CMP, target ₹460, stop loss ₹405.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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