Nifty 50 opened at 19,682.80 against the previous close of 19,674.55 and touched the intraday high and low of 19,699.35 and 19,637.45 respectively. Nifty 50 finally closed at 19,664.70, down 10 points, or 0.05 per cent. The Sensex closed 78 points, or 0.12 per cent, lower at 65,945.47.
The BSE Midcap index also ended in the red, falling 0.09 per cent but the BSE Smallcap index managed to clock a gain of 0.33 per cent. IT stocks remained weak, falling 0.5 per cent on worries over demand uncertainties due to a higher interest rate environment in the US, a key market for Indian IT companies.
As many as 169 stocks, including Colgate-Palmolive (India), Coal India, Tata Consumer Products, Trent and Varun Beverages, hit their fresh 52-week highs in intraday trade on the BSE.
Shares of Vedanta will be in focus during Wednesday’s trading session after global ratings agency Moody’s downgraded Vedanta Resources’ corporate family rating (CFR) from Caa1 to Caa2 due to elevated risk of debt restructuring over the next few months.
Day trading guide for stock markets today
On the outlook for Nifty, Ajit Mishra, SVP – Technical Research, Religare Broking said that a marginal rebound on the global front combined with oversold positions is capping the downside however the tone is still bearish.
‘’A decisive move above 19,750, which coincides with 20 EMA, may prompt some recovery. Amid all, we reiterate our view to stay stock-specific and avoid aggressive positions,” said Mishra.
Rupak De, Senior Technical Analyst at LKP Securities adds that Nifty remained largely range-bound throughout the day as traders appeared uncertain. However, the short-term sentiment remains bearish as Nifty closed below the 21EMA.
‘’Looking ahead, the trend is expected to stay bearish as long as Nifty remains below the 19750 level. A support level is established at 19600, below which the index may decline further towards 19250,” said De.
On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities observes that the index has remained in a consolidation phase, marked by the bulls defending the 45,500 level while the bears have established a hurdle around 45,000.
‘’To establish a trending move, the index must break out of this range on either side, providing a clear direction for the market. Currently, the index is trading below its 20-day moving average (20DMA), and a decisive move above this level could trigger positional buying on the long side, potentially changing the landscape of this consolidation phase.” said Shah.
Global Cues
The US Treasury yields hit a multi-year high and the US dollar rose to a 10-month high level amid concerns over interest rates staying high for an extended period and its impact on the global economy.
In their recent meetings, major central banks of the world, including the US Fed, the European Central Bank (ECB) and the Bank of England (BoE) have indicated interest rates will stay high for a longer period.
Oil prices settled nearly 1 per cent higher on Tuesday, rebounding from a slump to a two-week low in early trading as expectations of tighter supply outweighed worries that an uncertain economic outlook would crimp demand.
Brent crude futures settled 67 cents higher, or 0.7 per cent, at $93.96 a barrel. U.S. West Texas Intermediate crude futures settled 71 cents higher, or 0.8 per cent, at $90.39, according to news agency Reuters.
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Day trading stocks for today
On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking, Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd, Sumeet Bagadia, Executive Director at Choice Broking, and Religare Broking analysts— recommended six stocks to buy today.
Sumeet Bagadia’s intraday stocks for today:
1.BSE: Buy BSE at ₹1,276.9 with a stoploss of ₹1,290 at a target price of ₹1,405
BSE, currently trading at ₹1276.9, has recently shown a strong reversal from a support level and formed a bullish candlestick pattern on the daily chart, accompanied by robust trading volume. Over the past week, the stock has consistently found support at the ₹1200 level, indicating significant price stability.
Additionally, BSE is presently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This emphasizes its bullish momentum and suggests the potential for further upward price movement.
The Relative Strength Index (RSI) currently stands at 67.4 and is trending upwards, signaling increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) is exhibiting a positive crossover. This combination of technical indicators suggests that BSE may have the potential to reach a target price of ₹1,405 in the near term.
To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹1,290 to protect your investment in case the market takes an unexpected turn. Overall, considering the technical analysis and current market conditions, BSE appears to present a promising buying opportunity for those targeting a ₹1,405 price level, provided they implement prudent risk management measures.
2. Varun Beverages: Buy Varun Beverages at ₹967 with a stoploss of ₹942 at a target price of ₹995
Varun Beverages Limited (VBL) is currently displaying a commendable positive surge, having recently broken through the significant resistance level of ₹947. This breakthrough marks a pivotal moment for the stock, indicating a potential upward trajectory in the near future.
Furthermore, VBL is presently trading above its key moving averages, including the 20-day, 50-day, 100-day, and 200-day moving averages, affirming a robust bullish trend.
In addition to these encouraging signs, the Bollinger Bands are also indicating an expansion, further reinforcing the optimistic sentiment surrounding VBL. This expansion implies increased volatility and potential for further price movement, aligning with the positive breakout observed. The Relative Strength Index (RSI) stands at ₹74, underscoring the stock’s current strong buying momentum.
Given the favorable technical signals and positive momentum observed, a prudent entry point for investors would be at ₹967, with an anticipated target price of ₹995.
Mitesh Karwa’s intra day stocks for today:
3.Dixon: Buy Dixon in the range of ₹5093 – ₹5,098 with a stoploss of ₹4,920 at a target price of ₹5,342
Dixon is seen to be breaking out of a resistance zone and making a bullish candlestick which is why a buy recommendation is initiated for targets upto Rs.5,342. One can initiate buy on dip in the range of 5,093-5,098 with stoploss below ₹4,920 on daily closing basis.
4.MapMyIndia (C.E Info Systems): Buy MapMyIndia in the range of ₹1,770- ₹1,773 with a stoploss of ₹1,726 at a target price of ₹1,830
MapMyIndia is seen to be breaking out of a pattern formation with a bullish candlestick on the daily timeframe which indicates strength which is buying is recommended for targets upto Rs. 1,830. One can initiate a buy trade in between the range of ₹1,770- ₹1,773 with stoploss of ₹1,726 on daily closing basis.
Religare Brokings’ intraday stocks for today:
5.Federal Bank: Buy Federal Bank at ₹147.25 with a stoploss of ₹141 at a target price of ₹162
Federal Bank has been strong while other banking counters are witnessing consolidation or facing pressure. After the consolidation breakout, it is holding firmly above the short term moving average(20 EMA) and inching gradually higher. The chart pattern indicates the prevailing tone to continue.
6.Tata Consumer Products: Buy Tata Consumer Products at ₹905 with a stoploss of ₹865 at a target price of ₹980
Tata Consumer has witnessed breakout from a buying pivot, after spending nearly three months in a narrow range. The price action combined with stability in the FMCG index is pointing towards the steady up move ahead. We thus recommend creating fresh longs in the mentioned zone.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 27 Sep 2023, 06:08 AM IST