Day trading guide for today: Six buy or sell stocks for Wednesday — June 21

Day trading guide for today: Domestic equity benchmarks Sensex and Nifty ended higher in Tuesday's session led by fag-end buying, despite weak global cues after China cut interest rates by less than expected. Sensex closed with a gain of 159 points, or 0.25 per cent, at 63,327.70 while the Nifty ended at 18,816.70, up 61 points, or 0.33 per cent.

Apart from Nifty Media (down 1.22 per cent), Healthcare (down 0.26 per cent) and Pharma (down 0.19 per cent), all sectoral indices ended higher on NSE. Nifty IT (up 0.78 per cent), Auto (up 0.74 per cent) and Metal (up 0.70 per cent) rose up to a per cent. The Nifty Bank index ended 0.30 per cent higher at 43,766.50.

Day trading guide for stock market today

On the outlook for Nifty today, Shrikant Chouhan, Head of Research (Retail), Kotak Securities observes that Nifty took support near 18,650 and bounced back sharply. He said on intraday charts, the index formed a double bottom formation which is indicating the continuation of an uptrend formation in the near future.

"For the day traders, 18,750 would be the trend decider level. Above the same, the index could rally to 18,900-18,925. Below 18,750, the selling pressure is likely to accelerate and the index could retest the level of 18,650-18,620," said Chouhan.

On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said the Bank Nifty index saw the bulls hold a support level of 43,400. Currently, the index is trading within a broad range between 43,400 and 44,000.

"A breakout on either side of this range is likely to result in trending moves. As long as the support level of 43,400 is held, a buy-on-dip approach is suggested. Once the index surpasses the level of 44,000 it will witness sharp short covering on the upside towards 45,000 levels," said Shah.
 

Global factors spark caution

Advising stock market traders to keep a check on their positions, Ajit Mishra, SVP - Technical Research, Religare Broking said, ‘’Nifty has respected the trend line support around 18,660 levels and witnessed a steady rebound. This move shows that bulls are in control and the tone would remain positive till it holds 18,550. Traders should align their positions accordingly but suggest keeping a check on the size of positions citing intermediate choppiness.''

The market witnessed cautious trading y due to weak global cues, with heightened concerns over the Chinese economy following their decision to cut interest rates after a 10-month pause.

"Multiple factors such as mounting Chinese growth fears, anxiety ahead of Powell's testimony and delayed monsoon have sparked caution," said Prashanth Tapse, senior vice president for research at Mehta Equities.

Stocks to watch today

Two stocks will be in focus in Wednesday's session as they will turn ex-date for their bonus issue. These two stocks are Gulshan Polyols and IndiaMART InterMESH. Bonus shares are issued in a certain proportion only to the existing shareholders by the listed companies.

Among dividend stocks, two stocks are going to trade ex-dividend today. The two dividend paying stocks are Oberoi Realty and Shree Digvijay Cement Co. Ltd.

F&O ban list

Bharat Heavy Electricals Ltd (BHEL), Delta Corp Ltd, Hindustan Aeronautics Limited (HAL), Hindustan Copper Ltd, Indiabulls Housing Finance, India Cements Ltd, and L&T Finance Holdings are the seven 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, Vice President - Research at IIFL Securities, and Sumeet Bagadia, Executive Director at Choice Broking— recommended six stocks to buy today.

Ganesh Dongre's intraday stocks for today

1.DLF: BUY DLF at ₹489 with a stop loss of ₹478 at a target price of ₹505.

‘’In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 505. so, holding the support level of 485-478 this stock can bounce toward the 505 level in the short term, so the trader can go long with a stop loss of 478 for the target price of 505,'' said Dongre.

2.HDFC Bank: Buy HDFC Bank at ₹1,608 with a stop loss at ₹1,580 at a target price of ₹1,630.

‘’On the short-term hourly chart, the stock has given a bullish reversal pattern, and the technical indicator RSI still inching up, so holding the support level of 1580 this stock can bounce toward the 1,630 level in the short term, so the trader can go long with a stop loss of 1,580 for the target price of 1,630,'' said Dongre.

Anuj Gupta's buy or sell stocks

3. Lemon Tree Hotels: Buy Lemontree at stop loss of ₹86 and a target price of ₹104

Lemon Tree Hotels has bullish chart structure, positive trend, and moving up after consolidation.

4. Ugro Capital: Buy Ugro Capital with a stop loss of ₹209 and a target price of ₹255

Ugro Capital shows rising volumes, trend positive, bullish candlestick pattern, and showing on weekly charts.

Sumeet Bagadia's intraday stocks for today

5. Bajaj Auto: Buy Bajaj Auto in cash @ ₹4,662 with a stop loss of ₹4,570 at a target price of ₹4,850

BAJAJ AUTO has a strong support at 4570 levels. The stock has recovered from its support levels and is now trading near 4662 levels. On daily chart the stock has formed a bullish engulfing pattern which indicates the reversal of bearish trend.

 The RSI indicator is also comfortably trading near 54 levels, indicating strength. The stock has closed above 20 Day EMA levels which are around 4656 levels and now trading above all important moving averages. The bullish candle on daily chart is supported by volumes.

We recommend purchasing BAJAJ_AUTO at the current market price of 4662 with a medium-term target price of 4850. If the price falls below 4570, our analysis will be deemed invalid.

6. Larsen & Toubro: Buy L&T in cash @ ₹2,382 with a stop loss of ₹2,348 at a target price of ₹2,442.

Stock is trading at 2382 levels. On a closing basis, the stock has respected the support levels and hasn't closed below its strong support levels of 2350. LT can now progress even further towards all-time high levels and beyond. 

The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 69 levels. The stock is also moving above all important moving averages. 

Once stock crosses the level of 2390 it can move towards the level of 2440 and above. Based on the above technical analysis we recommend buying LT at CMP of 2382 for a medium term outlook with a stop loss of 2348 for targets of 2442.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.