Day trading guide for Wednesday: On account of strong global cues, bulls continued to beat bears on fourth straight session on Tuesday. NSE Nifty gained 133 points and closed at 18,070 whereas BSE Sensex surged 455 points and finished at 60,571 levels. Nifty Bank index ended 299 points higher at 40,873 mark. Among sectors, metals, banks, capital goods and FMCG indices rose the most while oil & gas and realty indices fell the most. Broad market underperformed with mid-cap and small-cap indices rising 0.24 per cent and 0.32 per cent respectively.
According to stock market experts, the market is gradually advancing after surpassing the resistance of significant down trend line at 17,900 levels. But, the strength of upside momentum, which is required for a decisive upside breakout is missing.
Day trading guide for stock market today
Speaking on Nifty technical outlook, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The short term trend of Nifty continues to be positive amidst a range movement. The display of lack of strength post upside move of crucial resistance of down trend line at 17,900 levels could be a cause of concern. The next two overhead resistances are to be watched at 18,115 and 18,350 levels. Immediate support for Nifty 50 index is placed at 17,950 levels.”
“The Nifty surpassed the hurdle of 18000 mark finally to register a Higher High on the daily chart and continue the momentum. The banking index too continued its upside move and almost tested the 41000 mark today. However, after many days the broader markets showed signs of some profit booking and hence, the Midcap and the Small cap stocks relatively underperformed and posted marginal gains. The oscillator still continues to hint at positive momentum, but the readings on the lower time frame chart have reached the overbought zone in both Nifty as well as Bank Nifty,” said Ruchit Jain, Lead Research at 5paisa.com.
Nifty call put option data
Speaking on Nifty call put ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “Nifty Option chain for the weekly expiry reflects on CE writers adding over a lakh contracts at 18500 strikes, with immediate strikes showing unwinding as well. PE writers building the support at 18000PE with also overall more than a lakh contracts and PCR OI at 18000 being nearly 2, just plays the Bullish sentiment more confidently.”
Nifty Bank call put option data
“Option chain on PE writers being active at various levels in between 40000PE -40800PE, with max fresh exposure at 40800PE – more than 50 thousand contracts. CE writers adding exposure of over more than a lakh at 41000CE, followed by over 70 thousand contracts at 42000CE/43000CE, thereby also hinting strong upside above 41200 zones,” Shilpa Rout concluded.
Day trading stocks
Sharing intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking and Mehul Kothari, AVP — Technical Research at Anand Rathi — recommended 4 stocks to buy today.
Sumeet Bagadia’s stock picks for Wednesday
1] Britannia Industries: Buy at CMP, target ₹3850, stop loss ₹3670
2] HDFC Bank: Buy at CMP, target ₹1535 to ₹1550, stop loss ₹1490
Mehul Kothari’s intraday stocks for today
3] Tata Steel: Buy at ₹108, target ₹112, stop loss ₹105
4] PVR: Buy at ₹1910, target ₹1970, stop loss ₹1870.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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