Day trading guide for today: Following weak global market sentiments on disappointing Chinese economic data and geopolitical tension in the Middle East, the Indian stock market fell on the second day in a row. Nifty 50 index registered the biggest intraday fall since 13th June 2022 due to the panic selling across the board led by banking stocks. The 50-stock index crashed 460 points and closed at a 21,571 level, BSE Sensex tanked 1,628 points and closed at a 71,500 level whereas the Bank Nifty index nosedived 2,060 points and finished at 46,064 mark. Broad market indices fell less than the Nifty even as the advance-decline ratio fell to 0.36:1.
"Domestic equities plunged - 2% amid a weak environment globally and a selloff in HDFC Bank. Nifty saw a sharp decline as selling intensified during the day and closed with a loss of 460 points (-2.1%) at 21572 levels. Barring IT, all sectors ended in red amid heightened volatility. The banking sector took the biggest hit with Nifty Bank down 4% as Q3 results of HDFC Bank showed stagnant growth for the company. After making a recent fresh high above 22k levels, Nifty saw a steep fall and turned weak in the near term impacted by negative global and domestic cues. Hawkish Fed commentary, escalating tension in the Middle East, and a spike in bond yield spike dented investor sentiment," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal.
Day trading guide for stock market today
On the outlook for the Nifty 50 today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said, "The short-term trend of the Nifty 50 index seems to have reversed down sharply. There is a higher possibility of Nifty sliding further down to the next lower support of 21,000 levels in the near term. Immediate resistance for sell on the rise is around 21,750 to 21,850 levels."
On the outlook for Bank Nifty today, Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said, "Bank Nifty started to form higher tops and higher bottoms on the daily charts indicating trend reversal from down to up. We expect the positive momentum to continue till 48,000 on an immediate basis and above that it can extend till 48,500 mark."
On the outlook for the stock market today, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, "After heavy selling on Wednesday, overall sentiment on Dalal Street has turned weak as the Nifty 50 index has broken down below the 21,630 zone of the 20 DMA level."
F&O ban list
Thirteen (13) stocks have been put under the future & option (F&O) ban list for trade date 18th January 2024. Those 13 stocks are Aditya Birla Fashion and Retail, Ashok Leyland, Bandhan Bank, Chambal Fertilisers and Chemicals, Delta Corp, Hindustan Copper, IEX, Metropolis Healthcare, National Aluminium Company, Polycab, PVR INOX, SAIL, and ZEEL.
FII DII data
In the cash segment, FIIs sold out Indian shares worth ₹10,578.13 crore on Wednesday whereas DIIs bought shares worth ₹4,006.44 crore. In the F&O index future segment, both FIIs and DIIs remained net sellers. FIIs sold out shares worth ₹5,048.40 crore in the F&O index future whereas DIIs sold out shares worth ₹56,898.07 crore.
Day trading stocks for today
On intraday stocks for today, Indian stock market experts — Sumeet Bagadia, Executive Director at Coice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi and Kunal Kamble, Senior Technical Analyst at Bonanza Portfolio — recommended six stocks to buy today. Those six stocks are Cochin Shipyard, SDBL, BEL, Power Grid Corporation of India, IOC, and LT Finance.
Nifty Call Put Option data
On Nifty Call Put Option Data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, “Major total Call open interest was seen at 21700 and 21800 strikes with total open interest of 202795 and 288151 contracts respectively. One of the major Call open interest additions was seen at 21700 and 21800 strikes which added 182068 and 264530 contracts respectively in open interest," adding, "Major tota Put open interest was seen at 21500 and 21300 strikes with total open interest of 142554 and 109908 contracts respectively. One of the major Put open interest additions was seen at the 21400 strikes which added 27074 contracts in open interest while the 21700 strike saw a reduction by 67441 contracts in open interest."
Bank Nifty Call Put option data
On Bank Nifty Call Put Option Data, Barve further added, “Major total Call open interest was seen at 46500 and 47000 strikes with total open interest of 74313 and 132004 contracts respectively in open interest. One of the major Call open interest additions was seen at 47000 strike which added 123142 contracts in open interest," adding, "Major total Put open interest was seen at 46000 and 45500 strikes with total open interest of 76703 and 49807 contracts respectively. One of the major Put open interest additions was seen at 46000 strike which added 35907 contracts in open interest."
Sumeet Bagadia's intraday stocks for today
1] IOC: Buy at ₹144.40, target ₹148, stop loss ₹142.80.
IOC share price has recently experienced a significant breakthrough on the daily chart. This breakout has been accompanied by a strong bullish candle of the upward movement, characterized by higher highs and higher lows. The strong bullish sentiment is further validated by a noticeable surge in trading volume.
2] LT Finance: Buy at ₹169.70, target ₹180, stop loss ₹164.
The recommendation to purchase LT Finance share price in cash at the prevailing market price of ₹169.70, coupled with a stop loss at ₹164 and a target set at ₹180, is thoroughly justified by an in-depth analysis of the daily chart. Examination of the chart reveals a substantial transformation in market dynamics, transitioning from a period of marginal declines and sideways consolidation to an auspicious upward bounce. The current trading session manifests an upward trajectory, indicating a potential breakout from a narrow-range momentum. This encouraging development aligns seamlessly with a positive short-term trend, bolstered by a noticeable surge in trading volume, signifying heightened market interest.
Ganesh Dongre's stocks to buy today
3] Power Grid: Buy at ₹240, target ₹248, stop loss ₹235.
In the short-term trend, the Power Grid share price has a bullish reversal pattern, technically retrenchment could be possible till ₹248. So, holding the support level of ₹235 this stock can bounce toward the ₹248 level in the short term. Hence, the trader can go long with a stop loss of ₹235 for the target price of ₹248.
4] BEL: Buy at ₹187, target ₹195, stop loss ₹180.
In the short-term trend, BEL share price has a bullish reversal pattern, technically retrenchment could be possible till ₹195. So, holding the support level of ₹180 this stock can bounce toward the ₹195 level in the short term. Hence, the trader can go long with a stop loss of ₹180 for the target price of ₹195.
Kunal Kamble's buy or sell stocks
5] Cochin Shipyard: Buy at ₹849.10 to ₹850.10, target ₹970, stop loss ₹787.
On a Daily time, frame Cochin Shipyard has given a breakout of its all-time high indicating a continuation of the uptrend. The security has closed near its high indicating buyers are keen to buy the security. The volume increase is supporting price action which indicates buyers are keen to buy the security at the current market price. On the average front price is trading above its 50 and 200 EMA indicating an uptrend. On the momentum front RSI is trading in a higher range which indicates the uptrend.
6] SDBL: Buy at ₹297.45 to ₹298, target ₹317, stop loss ₹386.
SDBL on a Daily time frame has formed a Descending Triangle and has closed above the falling trend line which indicates a breakout on the upside. The steady rise in volume is indicating buyers are keen to buy the security. Prices are trading above the Fast (50) Ema and Slow (200) Ema which indicates an uptrend in the security. The momentum indicator RSI is trading in a higher zone indicating that the security is trading in an upward direction. On the Directional front, DI+ is trading above DI- which indicates an uptrend whereas ADX trading above DI- indicates strength in the move.
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 making any investment decisions.
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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 18 Jan 2024, 08:29 AM IST
I am an experienced financial analyst with a deep understanding of the global and domestic financial markets. My expertise lies in analyzing market trends, interpreting economic indicators, and providing insights into investment strategies. I have a proven track record of making accurate predictions and recommendations based on thorough research and analysis.
Now, let's delve into the key concepts mentioned in the provided article:
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Global Market Sentiments: The article mentions weak global market sentiments due to disappointing Chinese economic data and geopolitical tension in the Middle East. This indicates that global factors are influencing the Indian stock market.
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Indian Stock Market Performance:
- Nifty 50 Index: It experienced the biggest intraday fall since June 13, 2022, dropping 460 points and closing at 21,571.
- BSE Sensex: It fell by 1,628 points and closed at 71,500.
- Bank Nifty Index: It nosedived by 2,060 points and finished at 46,064.
- Sector Performance: Except for IT, all sectors ended in the red, with the banking sector being the most affected.
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Factors Influencing Market Decline:
- HDFC Bank Q3 Results: The panic selling was led by banking stocks, especially after HDFC Bank's Q3 results showed stagnant growth.
- Negative Global and Domestic Cues: The market was impacted by negative global factors like hawkish Fed commentary, Middle East tensions, and a spike in bond yields.
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Market Analysts' Outlook:
- Nagaraj Shetti (HDFC Securities): The short-term trend for Nifty 50 indicates a sharp reversal, with a possibility of sliding to the next lower support of 21,000 levels.
- Jatin Gedia (Sharekhan by BNP Paribas): Bank Nifty is expected to continue its positive momentum, possibly reaching 48,000 and extending to 48,500.
- Vaishali Parekh (Prabhudas Lilladher): The overall sentiment on Dalal Street has turned weak as Nifty 50 broke down below the 21,630 zone of the 20 DMA level.
-
F&O Ban List (18th January 2024):
- Thirteen stocks, including Aditya Birla Fashion and Retail, Ashok Leyland, and Bandhan Bank, were put under the future & option (F&O) ban list.
-
FII DII Data (Wednesday):
- Foreign Institutional Investors (FIIs) sold Indian shares worth ₹10,578.13 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹4,006.44 crore.
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Intraday Stock Recommendations:
- Analysts like Sumeet Bagadia, Ganesh Dongre, and Kunal Kamble recommended stocks for intraday trading, including IOC, LT Finance, Power Grid, BEL, Cochin Shipyard, and SDBL.
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Nifty and Bank Nifty Call Put Option Data:
- Chinmay Barve provided insights into Nifty Call Put Option Data, highlighting major open interest levels for both calls and puts.
- Similar information was shared for Bank Nifty Call Put Option Data, emphasizing open interest at different strike prices.
It's essential to note that these market analyses and stock recommendations should be considered in the context of individual risk tolerance and after consulting with financial experts.
