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Day trading guide for Wednesday: Indian stock market broke a five day winning streak on Tuesday led lower by negative global cues. Nifty 50 index ended 208 points lower at 16,663 whereas BSE Sensex shed 709 points and closed at 55,776 levels. Bank Nifty index lost 289 points and closed at 35,022 levels. According to stock market experts, current market pattern indicate a formation of bearish dark cloud cover type formation at highs. Normally, formation of such dark cloud cover patterns after a reasonable upside move or at the hurdle more often results in reversal pattern post confirmation. Hence, one may expect further weakness in the coming session.
Day trading guide for stock market today
Speaking on day trading guide for NSE Nifty today; Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The sharp downward reversal of Tuesday from near the crucial resistance zone of 16,800 to 17,000 indicate chances of further downward correction in the market for short term. The overall chart pattern signal a chances of higher bottom formation around 16,400 to 16,250 levels on NSE Nifty in the next few sessions, before showing another round of upside move."
Expecting volatility in the markets to continue; Ruchit Jain, Lead Research at 5paisa.com said, "Global events such as news flows on Russia-Ukraine geopolitical tensions and the outcome of Fed meeting are likely to drive the near term momentum in the market. However, technically the index has cooled off from the resistances and could enter into a broad consolidation phase before the next phase of the trended move. We expect the volatility to continue and hence, traders should look for opportunities on both sides of the trade. The immediate supports for Nifty is placed around 16,500 to 16,400 while 16,800 to 16,900 will be seen as resistance."
Sharing short and broad range in regard to Nifty and Bank Nifty index today; Sumeet Bagadia, Executive Director at Choice Broking said, "Broader range for Nifty today is 16,300 to 17,200 whereas for high risk traders, short range of Nifty today is between 16,450 to 17,000. Likewise, broader range for Bank Nifty today is 34,300 to 36,300 while for high risk traders, short range of Nifty today is placed between 34,700 to 35,700 levels."
Day trading stocks
Sharing day trading stocks to buy today; stock market experts — Sumeet Bagadia of Choice Broking; Anuj Gupta, Vice President at IIFL Securities and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended 6 stocks to buy today.
Sumeet Bagadia's day trading stocks
1] Motherson Sumi: Buy at CMP, target ₹140 to ₹145, stop loss ₹128;
2] Minda Corp: Buy at CMP, target ₹225, stop loss ₹185
Anuj Gupta's stock picks for today
3] Tata Power: Momentum buy at CMP, target ₹470, stop loss ₹400
4] Equitas Holdings: Buy at CMP, target ₹125, stop loss ₹90
Avinash Gorakshkar's day trading stocks for today
5] ICICI Bank: Buy at CMP, target ₹730, stop loss ₹685
6] Mahindra & Mahindra: Buy at CMP, target ₹790, stop loss ₹748.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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