Day trading guide for today: 6 stocks to buy or sell on Thursday — 20th October
Day trading guide for today: Nifty 50 index is trading near strong resistances and needs to clear them to move higher, say experts
PremiumDay trading guide for today: Despite rupee touching new low against the US dollar, Indian stock market ended with modest gain on Wednesday. NSE Nifty finished 25 points higher at 17,512 while BSE Sensex gained 146 points and closed at 59,107 levels. Nifty Bank index finished 54 points north at 40,373 mark. Broad market continued to underperform even as the advance decline ratio closed at 0.9:1.
According to stock market experts, Nifty is hovering near strong resistance, which coincide with a downward sloping trend line that has held down the highs of 2021 and 2022. The index needs to convincingly cross these resistances for the uptrend to continue, which could take the Nifty towards the previous intermediate highs of 18,096. Crucial supports for NSE Nifty to watch for resumption of weakness are at 17,434.
Day trading strategies for stock market today
On technical outlook for Nifty today, Subash Gangadharan, Senior Technical & Derivative Analyst at HDFC Securities said, "Technically, while the Nifty has moved up further after bouncing back from supports last week, the index is trading near strong resistances and needs to clear them to move higher. Upside momentum will pick up if the Nifty can cross the immediate resistance of 17608." Gangadharan advised stock specific approach and suggested intraday traders to buy stocks from sectors that are showing relative strength.
"Depreciation in the currency is generally not positive for the equity markets but inspite of the INR hitting a new low, our markets have not seen a new low. This is a positive divergence which shows buying interest amongst market participants. Also the pullback move in the global equity markets does not seem to be over yet and hence, we may not see any sharp sell-off due to currency depreciation this time. We could witness intraday sell-offs which could lead to higher volatility, but until the index breaks some important supports, we expect the market to trade with a positive bias and expect buying interest on declines," said Ruchit Jain, Lead Research at 5paisa.com.
Ruchit Jain of 5paisa.com went on to add that the RSI oscillator on the daily chart remains in 'buy' mode while it has given a negative crossover on the hourly chart. This just indicates a possible profit booking and hence, one should look for buying opportunities on decline and not chase the upside move.
Day trading stocks to buy today
On intraday stocks for today, share 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 6 stocks to buy today.
Sumeet Bagadia's stocks to buy today
1] Divi's Lab: Buy at CMP, target ₹3670 to ₹3700, stop loss ₹3550
2] Nestle: Buy at CMP, target ₹20200 to ₹20400, stop loss ₹19300
Anuj Gupta's shares to buy today
3] Federal Bank: Buy at CMP, target ₹137, stop loss ₹124
4] Electronics Mart: Momentum buy at CMP, target ₹120, stop loss ₹88
Manoj Dalmia's intraday stocks for today
5] IndusInd Bank: Buy at ₹1231, target ₹1240, stop loss ₹1224
6] Apollo Tyres: Buy at ₹287.60, target ₹290, stop loss ₹286.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
