Home / Markets / Stock Markets /  Day trading guide for today: 5 stocks to buy or sell today — 7th October

Day trading guide for today: Following strong global sentiments, Indian stock market closed in positive territory on second straight session on Thursday. NSE Nifty added 57 points and closed at 17,331 whereas BSE Sensex surged 156 points and closed at 58,222 levels. Nifty Bank index went up 172 points and finished at 39,282 mark. Small-cap and mid-cap indices outperformed Nifty after logging 1.13 per cent and 1.30 per cent gains. Advance decline ratio ended in positive zone at 2.43:1.

According to stock market experts, a small negative candle was formed on the daily chart with an upper shadow. Technically, this pattern indicates a breather type formation post sharp upside bounce from the lower supports of 16,800 levels recently. The market is currently facing resistance around 17,450 to 17,500 levels as per the concept of change in polarity.

Day trading strategies for stock market today

Unveiling day trading strategy in regard to Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The short-term uptrend of Nifty remains intact and there is a possibility of minor consolidation in the next 1-2 sessions around the hurdle of 17,400 to 17,500 levels before showing a decisive upside breakout of the said resistance. Immediate support for NSE Nifty is placed at 17,220 levels."

"In last four trading sessions, Nifty has recovered half of the recent losses and has retraced the corrective move from 18100 to 16750 by 50 percent. The upside move has been from the support of ‘200 DEMA’ and has been mainly due to the global factors where the Bond Yields and the Dollar Index has cooled off from their highs which is positive for equities. However, the indices are now trading around the crucial resistances as both Nifty and Bank Nifty are at the 50 percent retracement of the previous correction," said Ruchit Jain, Lead Research at 5paisa.com.

Ruchit Jain of 5paisa.com went on to add that the momentum readings which were in the oversold zone in during last week have cooled-off and has in fact now reached the overbought zone on the hourly time frame chart. Hence, traders should look to lighten up some longs around current level and will for more confirmation where the markets sustain above these retracement resistances or not. Until there’s resumption of a ‘Higher Top Higher Bottom’ structure, this upside move should just be read as a pullback move and hence, one should stay cautious.

Nifty call put option data

On Nifty call put ratio, Shilpa Rout, Derivative Lead Analyst at Prabhudas Lilladher said, "Nifty weekly expiry option chain reflects on PE writers aggressively adding equal positions at various strikes till 15000 strikes - overall more than 30 thousand contracts each, with CE writers standing tall at 17400/17500 zones - over 60 thousand contracts each. PCR_OI at 17300 is just above 1, which has to be on radar now for a decisive move now."

Bank Nifty call put data

"Bank Nifty weekly expiry option chain reflects on PE writers being active at 38500 strike - overall 45 thousand contracts, followed by 30 thousand contracts at many other strikes. CE writers building resistance at 40000 strike - overall more than 55 thousand contracts, which data hints on a range bound session likely," Shilpa Rout said.

Day trading stocks for today

Sharing intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Manoj Dalmia, Founder & Director, Proficient Equities — recommended 5 stocks to buy or sell today.

Sumeet Bagadia's stock of the day

1] Indian Hotels Company: Buy at CMP, target 380, stop loss 303

Anuj Gupta's stocks to buy today

2] Tata Steel: Buy at CMP, target 112, stop loss 97

3] Vedanta: Buy at CMP, target 320, stop loss 278

Manoj Dalmia's buy or sell stocks for today

4] Reliance Industries: Sell at 2409, target 2399, stop loss 2419

5] Adani Ports: Sell at 819, target 812, stop loss 823.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team
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