Day trading guide for today: Five buy or sell stocks for Wednesday —August 23
- Day trading stocks: Market experts have recommended five stocks to buy today —IndusInd Bank, Hindustan Aeronautics Limited (HAL), Tata Power, Federal Bank, and Gujarat Mineral Development Corporation Ltd (GMDCL).
Day trading guide for today: Domestic equity benchmarks Sensex and Nifty ended flat during Tuesday's session amid persistent concerns over US interest rates and China's economic health, although the mid-cap index rallied to a fresh record on brighter domestic prospects. The gains in shares of select heavyweights such as ITC, Larsen & Toubro and Axis Bank were offset by losses in those of HDFC Bank, ICICI Bank and TCS.
Sensex closed 4 points higher at 65,220 while the Nifty closed the day at 19,396, up 3 points. However, mid and smallcaps clocked strong gains. The BSE Midcap index ended 0.94 per cent higher while the Smallcap index ended with a gain of 0.89 per cent. They have jumped roughly 22 per cent so far this year, while the blue-chips have gained about 7 per cent.
While ITC, HDFC Life Insurance, NTPC, Adani Enterprises emerged as the top gainers on Nifty50, while Jio Financial Services, Bajaj Finserv, Cipla were among the top drags on August 22.
Foreign institutional investors (FIIs) continue their selling streak on D-Street and offloaded ₹495 crore, while the domestic institutional investors (DIIs) were net buyers again and invested ₹533.75 crore during the session.
According to analysts, the selling spree by FIIs is primarily due to higher US bond yields, a stronger US dollar against its peers. Also, potential interest rate hikes by the US Federal Reserve is also pushing FIIs to pull out funds from the domestic market.
Day trading guide for stock market today
On the outlook for Nifty, Ajit Mishra, SVP - Technical Research, Religare Broking observes that the recent rebound as a counter move within the corrective trend as Nifty has multiple hurdles to cross to change the tone.
‘’A mixed trend across sectors is offering opportunities on both sides. Participants should align their trades accordingly while keeping a check on position size,'' said Mishra.
Rupak De, Senior Technical Analyst at LKP Securities adds, "There is a noticeable resistance observed at the 21-day Exponential Moving Average (EMA) on the chart's upper spectrum. The prevailing sentiment appears feeble, given that the index is positioned beneath the crucial moving average point. As things stand, the market continues to favor a strategy of selling into rallies, maintaining this stance as long as it remains below the 19,500 mark."
On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities observes that the index is displayed continued weakness after an initially positive opening.
‘’The daily Relative Strength Index (RSI) has entered into a bearish crossover pattern. On the downside, there's a possibility of a decline towards the 43,800 mark; breaching this level could lead to a further drop towards 43,500. Conversely, the upper end is met with resistance around 44,200,'' said Shah.
Global Cues
The rising US bond yield, a stronger US dollar against its peers, potential interest rate hikes by US Federal Reserve, as well as China's faltering economy are the major global headwinds, currently limiting gains in domestic market.
The US 10-year yield is trading at a 16-year high and the 2-year yield is trading at 5 per cent. The dollar index has also moved above 103. At the same time valuation of Indian equity is not cheap and is supported by funds flow, noted market analysts.
‘’The influence of higher bond yields and concerns about potential rate hikes in the US is prompting FIIs to withdraw funds from the domestic market, contributing to the market's volatility,'' said Vinod Nair, Head of Research at Geojit Financial Services.
IT companies, which earn a significant share of their revenue from the US, lost 0.11 per cent on Tuesday over worries about higher-for-longer interest rates in the world's largest economy. ‘’In the near term market is expected to trade in a range as investors await the US Federal Reserve’s annual Jackson Hole gathering and US Fed Chair Jerome Powell's speech later in the week,'' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
F&O Ban List
Steel Authority of India (SAIL), BHEL, Escorts Kubota, Metropolis Healthcare Ltd, Gujarat Narmada Valley Fertilizers And Chemicals Limited, Delta Corp, Hindustan Copper, India Cements, Indiabulls Housing Finance, Punjab National Bank, Manappuram Finance, and Zee Entertainment Enterprises Ltd are the 12 stocks that are a part of the F&O ban list by the stock exchange for Wednesday.
The securities have been put on ban under the F&O segment as they have crossed 95 per cent of the market-wide position limit (MWPL), according to the NSE. However, the stocks will be available for trading in the cash market.
Day trading stocks for today
On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi, Anuj Gupta, Market Expert at HDFC Securities. and Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd— recommended five stocks to buy today.
Ganesh Dongre's intraday stocks for today:
1.Hindustan Aeronautics Limited (HAL): Buy HAL at ₹3,893 with a stoploss of ₹3,850 at a target price of ₹3,960
‘’In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 3960 so, holding the support level of 3850 this stock can bounce toward the 3960 level in the short term, so the trader can go long with a stop loss of 3850 for the target price of 3960,'' said Dongre.
2.IndusInd Bank: Buy IndusInd Bank at ₹1,402 with a stoploss of ₹1,380 at a target price of ₹1,430
‘’On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of 1,380 this stock can bounce toward the 1,430 level in the short term, so the trader can go long with a stop loss of 1,380 for the target price of 1,430,'' added Dongre.
Anuj Gupta's buy or sell stocks:
3.Tata Power: Buy Tata Power at a stoploss of ₹232 and at a target price of ₹257.
Tata Power shows a strong trend, bullish chart structure, substantial volumes, and is trading at 11 month high levels.
4.Federal Bank: Buy Federal Bank at a stoploss of ₹127 and at a target price of ₹148.
Federal Bank shows positive trend, bullish candlestick pattern coupled with substantial volumes, higher top higher bottom formations.
Pravesh Gour's intraday stocks for today:
5.Tata Power: Buy Tata Power at ₹243.50 with a stoploss of ₹237 and at a target price of ₹254. The stock has witnessed a breakout of an inverse head and shoulder formation on the daily chart, according to Gour.
6.Gujarat Mineral Development Corporation Ltd (GMDCL): Buy GMDCL at ₹196 with a stoploss of ₹190 and at a target price of ₹206. ‘’The counter is continuing its higher highs and higher lows formation and has given a breakout of a triangle formation with strong volume'', said Gour.
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.
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