Day trading guide for stock market today: Six stocks to buy or sell on Monday — 18th December

Day trading guide for today: Following strong global market sentiments, Indian stock market finished higher for seventh week in a row on Friday last week. Nifty 50 index surged 2.30 per cent last week and closed at 21,456 levels after climbing to a new high of 21,492. BSE Sensex logged weekly gain of 2.18 per cent and ended at 71,483 levels after hitting a new high of 71,605 on Friday. Nifty Bank index registered 1.85 per cent weekly gain and finished at 48,143 levels after climbing to a new peak of 48,219 on last session of the previous week.

"Nifty 50 index continued its northbound journey to close near day’s high with gains of 274 points (+1.3%) gain at 21,456 levels. Sector wise it was mixed bag with buying seen in IT, PSU Bank, Metals and Oil & Gas. Equity Markets are witnessing a Santa rally globally post the dovish outlook by US Fed and fall in dollar index. This along with strong FIIs buying and healthy macros, supported the positivity in Indian markets," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 18

Day trading guide for stock market today

Speaking on outlook for Nifty today, Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities said, "Technically, with the Nifty surging higher to new life highs, the bulls remain in control. Further upsides are likely once the immediate resistance of 21,492 is taken out. Caution is however warranted for the near term as the 14-day RSI at 84.93 is in overbought territory. 14-week RSI is at 75.87, which implies that it is not extremely overbought and there is scope for more upsides in the intermediate term. Thus, any short-term corrections can be utilized to buy into quality stocks. Crucial supports to watch for weakness are at 21,319 to 21,235."

On outlook for Bank Nifty today, Sheersham Gupta, Director & Senior Technical Analyst at Rupeezy said, "Bank Nifty, spearheaded by PSU Banks, has surged to a record-breaking 48,200 levels, inching closer to the significant 50,000 milestone. Technical analysis and open interest data suggest a support range at 47,800 to 48,000, with resistance identified at 48,200."

On outlook for stock market today, Osho Krishan, Sr. Analyst - Technical & Derivative Research at AngelOne said, "It had been a tremendous week for the bulls, wherein all major sectoral indices kept the momentum going with their significant participation. Going forward, it is advisable to have a selective approach and look out for thematic movers amidst the ongoing sectoral rotation. Meanwhile, the stance remains bullish, but one needs to stay light on positions on either of the sides for key indices. Also, as the rally has been backed by robust global developments, a thorough check on a regular basis is required to project immediate trends."

Day trading stocks for today

On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi and Virat Jagad, Technical Analyst at Bonanza Portfolio — recommended six stocks to buy today.

Sumeet Bagadia's intraday stocks for today

1] Tata Motors: Buy at ₹732.40, target ₹760, stop loss ₹715.

Tata Motors share is currently trading at the all-time high level of ₹732.40 levels. We can witness a strong breakout above ₹728 levels which was a prior resistance. This breakout is backed by the strong volumes indicating strength in the stock. Tata MOtors share is also trading above its short term (20 Day), Medium term (50 Day) and long term (200 Day) EMA levels. The momentum indicator has also moved higher and trading at 72 levels. The stock has a strong support near to ₹615 levels.

Based on the above analysis we recommend buying Tata Motors share and the CMP of ₹732.40 with a stop loss of ₹715 for the target of ₹760.

2] RBL Bank: Buy at ₹292.45, target ₹316, stop loss ₹282.

RBL Bank share, currently trading at ₹292.45, has recently broken out of its range by forming a new higher high and higher low, indicating a strong uptrend. The immediate resistance is near the ₹316 level, and the current price is exhibiting strong bullish momentum, expected to continue towards the ₹316 level. On the flip side, there is strong support near ₹282.

Also Read: Wall Street week ahead: Investors eye PCE, jobless data

Ganesh Dongre's stocks to buy today

3] Emami: Buy at ₹500, target ₹520, stop loss ₹490.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till ₹520. So, holding the support level of ₹490 this stock can bounce toward the ₹520 level in the short term. Hence, the trader can go long with a stop loss of ₹490 for the target price of ₹520.

4] Sobha: Buy at ₹1020, target ₹1045, stop loss ₹1000.

On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of ₹1000. This stock can bounce toward the ₹1045 level in the short term, so the trader can go long with a stop loss of ₹1000 for the target price of ₹1045.

Virat Jagad's buy or sell stocks

5] Graphite India: Buy at ₹540 to ₹545, target ₹575, stop loss ₹528.

On a Daily time frame Graphite India Ltd. has given a breakout of Rectangle Pattern on the upside, indicating a positive trend in the stock. Buyers have to look more attractive to buy the security above 530 levels. The Fast (21) EMA trading above the Slow (50) EMA indicating a positive trend with price trading above both the EMA indicates strength on the upside. On the Directional front, DMI + has crossed DMI- indicating a positive trend whereas ADX flatter and turning upward near the bottom is indicating strength in the formation The volume after the breakout is high, suggesting demand for security.

6] Reliance Industries Ltd or RIL: Buy at ₹2495 to ₹2500, target ₹2560, stop loss ₹2465.

Reliance Industries Ltd. has been building a flag and pole pattern in the daily time frame. The flag and the poles are a continuous pattern in general. The security formed a strong price action at the time of formation, indicating buyers were willing to buy securities and that they expected prices to rise. The prices are higher against major EMAs on the EMA front, indicating that there is an upward trend. The Slow EMA (50) is following the trend and trending upward which is indicating a positive trend. On the momentum indicator RSI is trading near 70 zone supporting the uptrend.

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 decision.