Day trading guide for Friday: Following fears of global recession and slash in India’s GDP forecast by Fitch Ratings agency, Dalal Street finished in red zone on second successive session on Thursday. NSE Nifty finished 126 points lower at at 17,877 while BSE Sensex ended 412 points south at 59,934 levels. Nifty Bank index lost 196 points and closed at 41,209 levels.
According to stock market experts, a long negative candle was formed on the daily chart, that has engulfed the long bull candle of Wednesday on the downside. Technically, this market action signal emergence of selling pressure at the resistance of 18,100 levels. On the downside, the Nifty is expected to find support around 17,750 to 17,700 levels in the short term.
Outlook for stock market today
Speaking on technical outlook of Nifty 50 index, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The short-term trend of Nifty continues to be range bound around 18,100 to 17,700 levels. There is a possibility of further consolidation or minor downward correction in the short term.”
Unveiling intraday trade strategy, Ruchit Jain, Lead Research at 5paisa.com said, “The rising Dollar Index is usually negative for the equities but a relative outperformance by our INR compared to other global currencies have resulted in an outperformance in our equity markets too. Short term traders should keep a close watch on the currency as well as any directional move in the currency could give us an early indication of the short term directional move.”
Nifty Call Put Option data
On Nifty Call Put Option ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “Nifty Option chain for the weekly expiry reflects on CE writers adding highest exposure at 18700CE – overall more than 70 thousand contracts, with highest fresh additions of 60 thousand contracts. PE writers standing tall at 16500 strike – max exposure of 45 thousand contracts, followed by several immediate other strikes with close to 40 thousand contracts. PCR OI at 17900 being just below 1, needs to buck up now to keep the momentum on the upside.”
“Bank Nifty Future Option chain on PE writers being active at 38500 strike – overall 50 thousand contracts, followed by 40000PE – overall 44 thousand contracts. CE writers adding exposure of over more than 55 thousand contracts at 41500CE, followed by 42000CE / 42500CE – more than 40 thousand contracts,” Shilpa Rout of Prabhudas Lilladher said.
Day trading stocks
Listing out intraday stocks for today, share market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Mehul Kothari, AVP — Technical Research at Anand Rathi — recommended 6 shares to buy today.
Sumeet Bagadia’s stocks to buy today
1] Coal India Limited: Buy at CMP, target ₹240 to ₹245, stop loss ₹229
2] Adani Port: Buy at CMP, target ₹990 to ₹1000, stop loss ₹950
Anuj Gupta’s stock picks for Friday
3] CEAT: Buy at CMP, target ₹1710, stop loss ₹1620
4] HDFC Bank: Momentum buy, target ₹1570, stop loss ₹1475
Mehul Kothari’s day trading stocks to buy today
5] Cummins India: Buy at ₹1250, target ₹1295, stop loss ₹1215
6] City Union Bank or CUB: Buy at ₹183, target ₹192, stop loss ₹178.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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