Day Trading Guide for Stock Market Today: Top Five Picks
In the fast-paced world of day trading, expert recommendations play a crucial role in navigating the volatile stock market. As we delve into today’s market dynamics, let’s explore the insights shared by market analysts and experts, highlighting five stocks that could shape your day’s trading strategy.
Market Overview
Despite optimistic commentary from the International Monetary Fund (IMF) and positive global cues, the Indian stock market faced a significant downturn on Wednesday. All key indices, including small-cap and mid-cap, witnessed a decline, signaling a broad-based selling trend on Dalal Street. Nifty 50 plummeted by 302 points to close at 21,150, BSE Sensex dropped 930 points to 70,506, and Bank Nifty corrected 425 points to end at 47,445.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, pointed out, “Domestic equities opened on a strong note, making a new high of 21,593. However, profit booking at higher levels led to a sharp decline, with Nifty closing at 21,150. The sell-off comes after a remarkable 12% surge in the last seven weeks.”
Expert Insights on Nifty 50 and Bank Nifty
Nifty 50 Outlook
Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities, anticipates further downsides if Nifty 50 breaches its immediate support at 21,087. Gangadharan believes that the index could head towards major supports at 21,026 to 20,769 in the coming sessions, with potential resistance at 21,325 levels during pullback rallies.
Bank Nifty Analysis
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted intense selling pressure on Bank Nifty. Despite a possible resistance at 47,600 to 47,700, Shah suggests a cautious approach, favoring selling on any upward movements. The overall sentiment remains bearish.
Market Outlook
Siddhartha Khemka of Motilal Oswal expects a market consolidation in the near term as investors resort to profit booking. Concerns about rising COVID cases in Kerala and Karnataka add caution. However, Khemka remains positive on the market, predicting a recovery after a pause, supported by global macros, peaking interest rates, and healthy domestic macros.
Call Put Option Data
Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities, provided insights into Nifty and Bank Nifty Call Put Option data. Major Call open interest for Nifty was observed at 21,200, 21,400, and 21,500 strikes, while significant Put open interest was noted at 21,000 and 20,800 strikes.
FII DII Data
In the cash segment, Foreign Institutional Investors (FIIs) sold Indian shares worth ₹1,322 crore, while Domestic Institutional Investors (DIIs) bought over ₹4,754 crore worth of shares during Wednesday’s trading.
Top Five Stocks for Day Trading Today
- AU Small Finance Bank (ASFB)
Recommendation: Buy at ₹760
Target: ₹830
Stop Loss: ₹737
AU Small Finance Bank has formed an inverted head and shoulders breakout, accompanied by significant volume. Trading above key Exponential Moving Averages (EMAs) and an RSI of 59.3 signal strong bullish momentum, supporting potential upward movement.
- Radico Khaitan
Recommendation: Buy at ₹1580
Target: ₹1682
Stop Loss: ₹1537
Radico Khaitan broke out of a rounding bottom pattern with a retest, demonstrating a strong reversal. Trading above key EMAs and an RSI of 54.96 indicate a bullish trend with potential upward price action.
- Tata Power
Recommendation: Buy at ₹320
Target: ₹335
Stop Loss: ₹310
Tata Power shows a bullish reversal pattern in the short-term trend, with possible retracement till ₹335. Trading above the support level of ₹310, the stock could bounce toward ₹335.
- State Bank of India (SBI)
Recommendation: Buy at ₹635
Target: ₹650
Stop Loss: ₹620
SBI exhibits a bullish reversal pattern on the short-term chart. Holding the support level of ₹620, the stock could move towards ₹650, making it a favorable option for long positions.
- V-Mart Retail Ltd.
Recommendation: Buy at ₹1945 to ₹1950
Target: ₹2050
Stop Loss: ₹1895
After a consolidation phase, V-Mart Retail started trading within a range. A breakout of the Double Bottom formation and positive EMA trends suggest further buying interest, with a potential upside of ₹2050.
Disclaimer: The views and recommendations provided are those of individual analysts or broking companies, not of Mint. Investors are advised to consult certified experts before making any investment decisions.
Conclusion
In conclusion, today’s market reflects the intricacies of a dynamic economic landscape. As we navigate through uncertainties, these expert insights and stock recommendations aim to guide day traders in making informed decisions. Stay vigilant, adapt to market shifts, and remember, knowledge is your strongest ally in the world of day trading.
