Day trading guide for today: Six buy or sell stocks for Wednesday —October 18

Day trading guide for today: Key equity indices the Sensex and the Nifty 50 ended with gains in the previous session, snapping their three-day losing run, on widespread buying across various sectors amid positive global cues. 

While the Israel-Hamas conflict endures and concerns about its potential spread to other nations persist, investors appear to have shifted their attention towards corporate earnings and macroeconomic indicators.

Nifty 50 index closed the day at 19,811.50, up 80 points, or 0.40 per cent. The 30-share pack Sensex closed the day at 66,428.09, up 261 points, or 0.39 per cent. The BSE Midcap index rose in sync with the benchmark index by 0.39 per cent while the Smallcap index outperformed, rising 0.70 per cent.

Market experts noted that frontline indices snapped the losing streak on the back of short-covering as positive Asian cues aided recovery and globally optimism over strong earnings helped ease concerns over the Israel-Gaza conflict.

Also Read: FIIs invest ₹263 crore in Indian stocks as Sensex, Nifty snap 3-day losing streak; DIIs infuse ₹112 crore

Day trading guide for stock market today

On the outlook for Nifty today, Ajit Mishra, SVP - Technical Research, Religare Broking reiterates bullish view. ‘’We suggest continuing with a 'buy on dips' approach till it manages to hold 19,600. On the other hand, we are seeing a rise in volatility across sectors with the beginning of earnings so traders should keep a check on stock selection and risk management aspects,'' said Mishra.

On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said that the market witnessed a persistent struggle between the bulls and the bears, resulting in the index closing around the resistance level of 44,500.

‘’This signifies ongoing uncertainty and indecision among market participants. The index is currently stuck within a broad trading range, with support around 44,000 and resistance at 45,000. This range-bound movement suggests a lack of a clear, sustained trend in either direction,'' said Shah.

‘’Despite the sideways trading range, the overall sentiment within this range remains bullish. Investors are inclined to use dips in the market as buying opportunities, reflecting confidence in the potential for upward movements,'' he added.
 

Global Cues

Analysts noted that the market scenario is changing fast. There is a risk-on mood in the market triggered by the hope that the Israel-Hamas conflict will not escalate further. An insight about the future direction of interest rates is expected from the Fed chair's upcoming speech on October 19th, according to Vinod Nair, Head of Research at Geojit Financial Services.

‘’President Biden’s upcoming trip to Israel and Jordan and the two US aircraft carriers sent to the Eastern Mediterranean is a clear message to Iran and Hezbollah not to intervene in the war. The market hopes that the war will remain localised, and this is the reason why the market remains hopeful,'' said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Also Read: IRM Energy IPO: Firm mobilises ₹160 crore from anchor investors ahead of issue

Stocks to watch today

Some major companies including Wipro, Bajaj Auto, IndusInd Bank, Bandhan Bank, Polycab, Shopper's Stop, Persistent Systems, LTIMindtree, Titagarh Rail Systems, UTI Asset Management Company, among others will declare their July-September quarter results for fiscal 2023-24 (Q2FY24) today.

Bajaj Finance, Larsen & Toubro Tech Services, Tata Elexsi, Happiest Minds, ICICI Prudential Life Insurance, Hathway Cable & Datacom Ltd will also be in focus during today's session as these companies declared their Q2FY24 post-market hours on Tuesday.
 

F&O Ban List

A total of ten stocks have been put under the ban for trade on Wednesday under the futures and options (F&O) segment by the National Stock Exchange (NSE). Balrampur Chini Mills, BHEL, Delta Corp, GNFC, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, MCX, and SAIL are the ten stocks that are a part of the F&O ban list by the stock exchange for October 18.
 

Day trading stocks for today

On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi, Ashish Katwa, Technical Analyst, Bonanza Portfolio Ltd, and Sumeet Bagadia, Executive Director at Choice Broking— recommended six stocks to buy today.

Ganesh Dongre's intraday stocks for today:

1.Bank of Baroda: Buy Bank of Baroda at ₹207.50 with a stop loss of ₹201 at a target price of ₹217

Bank of Baroda share is looking strong on chart pattern after some consolidation in recent sessions. Stock has taken strong support at ₹201 levels.

2.Bharat petroleum Corp Ltd (BPCL): Buy BPCL at CMP with a stop loss of ₹346 at a target price of ₹360

BPCL share is poised for short term upside and one can buy the stock at around Tuesday close price. Stock has made base around ₹346 and it may go up to ₹360 levels

Sumeet Bagadia's intraday stocks for today:

3.Britannia: Buy Britannia at ₹4,600.35 with a stop loss of ₹4,510 at a target price of ₹4,790

Britannia has corrected from its record high of 5,270 and has retested an important support level of 4,510, which is also close to 200 Day EMA. The stock's immediate resistance is located at 4,630. 

Once the stock crosses the indicated barrier, it may continue to rise toward the target of 4,790 and above. The RSI indicator is at a level of 55, which provides support for the stock to climb higher. At current levels the stock is trading above all important moving averages, which shows positive signal and can move towards the target.

With a medium-term target price of 4,790, we advise purchasing Britannia at the CMP of 4,600.35. If the price closes below 4,510, our analysis will be regarded as being invalid.

4.PVR Inox: Buy PVR Inox at ₹1,760,65 with a stop loss of ₹1,680 at a target price of ₹1,920

PVR Inox is currently trading at ₹1,760.65. On the daily chart, the price is consolidating below the resistance level of 1,784. If the price closes above the 1,784 level, the stock is likely to move further, with a target of 1,920. On the flip side, 1,732 and 1,680 are serving as immediate support levels. The stock is currently trading in a range between 1,784 and 1,735. 

Furthermore, PVR Inox is presently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, which reinforce its bullish momentum and suggest the potential for further upward price movement.

The Relative Strength Index (RSI) currently stands at 58.23 and is trending upwards, indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently displayed a positive crossover from the oversold region. 

This combination of technical indicators suggests that PVR Inox may have the potential to reach a target price of ₹1,920 in the near term. To effectively manage risk, it is advisable to implement a stop-loss (SL) at ₹1,680 to safeguard your investment in the event of an unexpected market reversal. 

In summary, considering the technical analysis and current market conditions, PVR Inox appears to offer an appealing buying opportunity for those aiming for a ₹1,920 price target, provided that prudent risk management measures are in place.

Ashish Katwa's intraday stocks for today:

5.Rashtriya Chemicals & Fertilizers (RCF): Buying range: Rs.140.50-139.50; Target RS. 150; Stop Loss Rs. 135

After a strong run, RCF started consolidating at the upper end where, on the daily chart, we've seen a breakout of the Symmetrical formation. This tells us that the bulls are in charge of security.

On the indicator front, RSI is trading close to the overbought area, which shows a positive trend in the RCF. We could see further buying interest in script till the Rs. 150 marks, with immediate support of Rs. 135. Another buying pressure would have been possible if it had managed to hold above the threshold.

6.Dilip Buildcon Ltd (DBL): Buying range: Rs.333.40- ₹332; Target ₹357; Stop Loss Rs. 321

On the four hourly chart, the stock has given a breakout of Falling supply trend line with bullish candlestick. The stock is trading above its 21-38 day’s exponential moving averages on the daily time frames, which is positive for the prices in the short to medium term. 

The Technical indicator Ichimoku cloud suggests that the price is trading above the conversion and base line, which points out positive strength. The daily strength indicator RSI (14) is in bullish mode and trading above the 60 level. Hence based on the above Technical Setup a Long position can be created in DBL with an SL of 321 for an Upside target of 357.
 

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.