Day Trading Guide for Monday: Global markets, including Dalal Street, witnessed heavy selling in the last two sessions last week, following weak global cues following disappointing US CPI data for August 2022. On Friday, there was a sharp weakness in the Nifty and closed the day at 17,530 with a fall of 346 points. BSE Sensex closed at 58,840 level, down 1093 points while Nifty Bank lost 432 points to close at 40,776 level.
According to Share Market Experts, Nifty has formed a long range bear candle on the weekly chart, with a bearish candle formation like a dark cloud cover. This week’s chart pattern confirms a false upside breakout of the important resistance of the down trend line at 17,900 level.
trading setup for stock market today
Speaking today on the technical outlook for Nifty, Nagraj Shetty, Technical Research Analyst, HDFC Securities said, “Short term trend of Nifty has reversed. Bearish candlestick pattern formation on daily and weekly charts indicating further weakness ahead. Gives signals. Markets. The next lows will be seen near 17,200 to 17,150 in the next few weeks. Any upside from the current levels may find resistance near 17,700 levels.”
Expecting the weak sentiments on Dalal Street to continue further, Ruchit Jain, Lead Research, 5paisa.com said, “Nifty 50 Index broke the support end of the pattern with a gap down opening on Friday and then it It also broke its crucial 20 DEMA support at 17,700. Once that was broken, the trend reversed and the index again entered a corrective phase, resulting in an all-day sell-off on Nifty to test the 17,500 mark. Pressure builds. The momentum readings on the hourly chart were already in a sell mode and negative crossover from the overbought zone on the daily chart also indicates that the short-term trend has turned negative for the index. In the coming few sessions, we may see some more A sell-off can be seen, but mid-term recovery cannot be ruled out. Hourly readings are turning into oversold territory.”
“Among the sectoral indices, Bank Nifty has also declined one per cent on Friday, but the broader trend has still not turned negative for the banking index. Hence, a relative outperformance in the sector may continue. For this, 40300 will be seen as a significant short-term support,” said Ruchit Jain of 5paisa.com.
nifty call put option data
“The Nifty options series for the weekly expiry reflects on CE writers adding the highest exposure in 17800 CE – over one lakh contracts in total, with the highest fresh addition of 80 thousand contracts as well. PE writers stand at 17000 PE – More than 90 thousand contracts are executed. Up to 16500/17500 strikes – maximum exposure of over 80 thousand contracts. PCR OI at 17500 is over 2 and 17600 is around 0.5, important to keep on radar to see forward direction Shilpa Raut, Derivatives Lead Analyst at Prabhudas Lilladher.
nifty bank call put option data
Shilpa Raut of Prabhudas Lilladher further said, “Bank Nifty option chain is scattered and looks everywhere. PE writers are active on 40000 strike – 50 thousand contracts in total, followed by various other strikes involving more than 40 thousand contracts. Adding CE authors Exposure to over 70 thousand contracts in multiple attacks—all the way up to 43000CE, which hints at a better structure for the index.”
day trading stocks
Speaking on stocks to buy today, stock market experts – Mehul Kothari, AVP – Technical Research at Anand Rathi and Anuj Gupta, Vice President – IIFL Securities – recommended 4 stocks to buy today.
Will buy shares of Mehul Kothari today
1]Gujarat Gas: Buy at 505, Target 540, stop loss 480
2]Max Financial Services: Buy On 825, target Rs 865, stop loss 800
Buying today in Anuj Gupta’s shares
3]State Bank Of India Or SBI: Buy On CMP, Target 590, stop loss 530
4]Tata Motors: Buy on CMP, Target 460, stop loss 405.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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