Business News/ Markets / Stock Markets/  Day trading guide for today: 6 stocks to buy or sell on Thursday — 2nd March

Day trading guide for today: After falling for eight straight sessions, Indian stock market finished higher on Wednesday. NSE Nifty gained 146 points and closed at 17,450, BSE Sensex surged 448 points and ended at 59,411 levels whereas Bank Nifty index shot up 429 points and finished at 40,698 mark. Broad market indices rose more than the Nifty even as the advance decline ratio rose to 3.25:1.

According to stock market experts, Indian stock snapped eight days losing spree on strong global cues as encouraging macro numbers in terms of manufacturing (highest M-o-M improvement in a decade), services and home sales growth (rising for the first time in 20 months) from China boosted investor sentiments across the globe and helped to revive sentiment following concerns over a prolonged period of US interest rate hikes.

Day trading guide for stock market today

Speaking on outlook for Nifty today, Deepak Jasani, Head of Retail Research at HDFC Securities said, "Nifty ended the short term downtrend on expected lines and rose well on Mar 01. Nifty could rise first towards 17,610 levels in the near term while 17,299 to 17,353 band could offer support." Jasani went on to add that global markets witnessed trend reversal on Wednesday on encouraging macro-economic data (manufacturing, services and home sales growth) from China.

"India's manufacturing activity continued to maintain growth momentum in February. The Manufacturing Purchasing Managers' Index standing at 55.3 in February, little changed from 55.4 in January. This figure was well above the long run average of 53.7. The February data pointed to a 12th consecutive hike in manufacturing production, attributed to sustained increases in new orders, favourable underlying demand and technological progress," Jasani added.

Pullback vs trend reversal

On whether this rally on Dalal Street is just a pullback move or it's a trend reversal, Ruchit Jain, Lead Research at said, "In our sense, odds are in favor of a trend reversal as the positive divergence after a correction is generally seen at bottoms. Further, the Nifty Midcap 100 and the Small-cap index has managed to recover well from their important supports thus forming a base at this week’s low. The FII’s positions are also short heavy with ‘Long Short Ratio’ at just 15 percent and no. of short positions at highs which were seen around the bottom of June 2022. Thus, if they cover their shorts from here, then it would lead to a decent upside move from current levels. Hence, it would be crucial to see their positioning in the next few sessions."

Unveiling intraday trading strategy for Thursday session, Ruchit Jain of said, "Looking at above technical evidences and the data, we advise traders to look for buying opportunities and trade with a positive bias. The Midcap stocks could deliver good returns in the short term and hence, one should focus on buying quality prepositions there."

Nifty call put option data

Speaking on Nifty call put ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, "Nifty weekly expiry option chain reflects aggressive additions at 17400PE of over 2.29 lakh OI contracts followed by followed by 17300PE/17000PE each with over 1.6 lakh OI contracts. CE writers stands at 17500CE and 17600CE strike with over 2 lakh contracts each. Additions of over 50 thousand contracts at 17450PE/17500PE strikes and aggressive call unwinding seen at 17400 strike. PCR_OI at 17400 is 1.8 which needs to be watched whether index is sustaining the level."

Bank Nifty call put option data

"Bank Nifty weekly expiry option chain witnesses PE writers exposure at 40000PE/40500PE - each with over 1.5 lakh OI contracts, aggressive fresh PE additions of over a lakh and 90 thousand contracts visible at 40500PE/40600PE strike. CE writers stands at 41000CE/ 42000CE with over 1.3 lakh OI contracts respectively," Rout added.

Day trading stocks to buy today

Asked about intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended 6 stocks to buy today.

Sumeet Bagadia's stocks to buy today

1] Ramco Cement: Buy at CMP, target 750 to 760, stop loss 710

2] UPL: Buy at CMP, target 730 to 740, stop loss 695

Anuj Gupta's intraday stocks for today

3] Life Insurance Corporation or LIC: Buy at CMP, target 640, stop loss 584

4] State Bank of India or SBI: Buy at CMP, target 565, stop loss 516

Ganesh Dongre's stock picks for Thursday

5] Havells India: Buy at 1216, target 1260, stop loss 1180

6] Tata Motors: Buy at 426, target 445, stop loss 416.

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 decisions.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 02 Mar 2023, 05:54 AM IST
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