Day trading guide for Monday: Fueled by return of FPI buying and strong global cues, key indices Sense and Nifty finished in positive zone for third straight session last week. After the end of Friday session, Nifty logged 2.62 per cent weekly gain whereas it recorded 8.70 per cent monthly gain in July 2022. Similarly, BSE Sensex ascended 2.67 per cent in the week gone by whereas it registered 8.50 per cent monthly gain in the month of July 2022. After the end of Friday session, advance decline ratio was sharply up at 2.06:1.
According to stock market experts, a long bull candle was formed on the weekly chart, which is back to back for the second weeks. This market action signal an increasing strength of upside momentum in the market post upside breakout, as per smaller and larger timeframe charts.
Day trading guide for stock market today
“The underlying trend of Nifty is sharply up. The unfilled opening upside gaps, sharp vertical upside move and the decisive upside breakout of significant overhead resistance indicate more upside ahead for the market ahead. The next upside targets to be watched around 17,600 to 17,800 levels in the next few weeks, but minor downward corrections/consolidations in between can’t be ruled out. Important support for NSE Nifty is placed at 16,950 to 16,800 levels.”
“Nifty has reclaimed the 17000 level, so let’s see some data to predict whether the up move will continue in the short term or reverse. Firstly, if we look at the derivatives data, the rollovers were slightly lower than the average and the up move in July has been mainly due to a combination of short covering and long formation. FII’s who were aggressive sellers in the last three months have covered their short positions and in fact they have started the August series with net long positions in the index futures. Technically, the index has formed a ‘Higher Top Higher Bottom’ formation on the daily chart and is retracing the previous downtrend,” said Ruchit Jain, Lead Research at 5paisa.com.
Day trading stocks
Sharing day trading stocks for today, stock market experts — Mehul Kothari, AVP — Technical Research at Anand Rathi and Rajesh Bhosale, Technical Analyst at Angel One — listed out 4 stocks to buy today.
Mehul Kothari’s stocks to buy today
1] M&M: Buy around ₹11665, target ₹1200, stop loss ₹1140
2] HCL Tech: Buy around ₹948, target ₹980, stop loss ₹930
Rajesh Bhosale’s intraday stocks for today
3] IRCTC: Buy around ₹637, target ₹688, stop loss ₹614
4] Finolex: Buy around ₹425, target ₹460, stop loss ₹404.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
