Day trading guide for today: Six stocks to buy or sell on Wednesday —January 3
- Day trading stocks: Market experts have recommended six stocks to buy today —Cipla, Oracle Financial Services Software, Welspun Corp, Nykaa, Mahindra Logistics, and Glaxosmithkline Pharmaceuticals Ltd.
Day trading guide for today: Domestic equity benchmarks Sensex and Nifty 50 ended in negative territory in the previous session on concerns over escalating geopolitical tensions and a significant jump in crude oil prices. The market's high valuation appears to have led investors to secure profits before the onset of December quarter earnings.
Sensex closed 379 points, or 0.53 per cent, lower at 71,892.48 while the Nifty 50 settled at 21,665.80, down 76 points, or 0.35 per cent. BSE midcap and smallcap indices hit their fresh record highs of 37,193.29 and 43,196.17 respectively during the session but failed to hold gains and ended almost flat.
Nifty 50 index opened slightly higher at 21,751 levels but soon came under the sell-off stress and touched intraday low of 21,555 mark on Tuesday. Experts said that the market is rebalancing ahead of the new results season and overbought condition of the key benchmark indices was ideal for profit booking trigger.
Day trading guide for the stock market today
On the outlook for Nifty today, Ajit Mishra, SVP - Technical Research, Religare Broking Ltd said, ‘’The underperformance of the banking majors is largely weighing on the sentiment amid consolidation and a decisive close above 21,800 in Nifty would prompt the next leg of the up move. Meanwhile, we feel it is prudent to prefer defensive viz. FMCG, pharma and stay selective in others.''
On the technical front, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, ‘’Strictly speaking, if last two days trading action on Dalal Street is any indication then volatility could be seen going ahead. From a technical perspective, Nifty’s aggressive upside targets are at 22,000 mark, while the line in the sand is at Nifty’s make-or-break support at 21,487 mark."
On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, ‘’To resume the upward trend and regain positive momentum, the index needs to achieve a breakout above the resistance at 48300, targeting levels of 49,000/50,000..A decisive breach below this level could intensify the downward momentum.''
Nifty Call Put Option data
Speaking on Nifty Call Put Option data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, ‘’Major total Call open interest was seen at 21,700 and 21,800 strikes with total open interest of 1,94,985 and 2,07,162 contracts respectively. Major Call open interest addition was seen at 21,700 and 21,800 strikes which added 1,12,665 and 86,264 contracts respectively in open interest.''
‘’Major total Put open interest was seen at 21,600 and 21,500 strikes with total open interest of 1,27,874 and 1,33,772 contracts respectively. Major Put open interest addition was seen at 21,500 strike which added 23,695 contracts in open interest,'' he added.
Bank Nifty Call Put Option data
Speaking on Bank Nifty Call Put Option data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, ‘’Major total Call open interest was seen at 48,000 strike with total open interest of 3,61,046 contracts in open interest. Major Call open interest addition was seen at 48,000 strike which added 3,04,239 contracts in open interest.''
‘’Major total Put open interest was seen at 47,600 and 47,000 strikes with total open interest of 1,50,859 and 2,06,792 contracts respectively. Major Put open interest addition was seen at 47,600 strike which added 96,355 contracts in open interest,'' he added.
Global Cues
According to media reports, US helicopters repelled an attack by Iran-backed Houthi militants on a Maersk container vessel in the Red Sea. The naval battle underlines the risk of a regional escalation in fighting as Israel continues with its relentless bombing campaign following a Hamas surprise cross-border attack on Israeli towns on October 7.
The Red Sea is the entry point for ships using the Suez Canal, which handles about 12 per cent of global trade and is vital for the movement of goods between Asia and Europe, according to Reuters.
The conflict in the Red Sea boosted oil prices as the chances of supply disruption grew. Crude oil benchmark Brent Crude traded 2.34 per cent higher near the $79 per barrel mark in the previous session.
The sharp surge in crude oil prices poses a threat to the Indian economy and could negatively impact stock market sentiment, given India's status as one of the leading importers of crude oil.
Stocks to watch today
Adani Group stocks will be in focus during today's session as the Supreme Court (SC) is expected to pronounce the judgment today, in a batch of petitions seeking examination of allegations of fraud made against Adani Group of companies in the Hindenburg Research report. The top court had reserved its judgment pertaining to the same case in November last year.
F&O Ban List
A total of six stocks –Steel Authority of India (SAIL), IEX, Zee Entertainment Enterprises Ltd (ZEEL), Hindustan Copper, Balrampur Chini Mills, and Delta Corp have been put under the ban for trade on Wednesday, January 3, under the futures and options (F&O) segment by the National Stock Exchange (NSE). No fresh positions are allowed for any of the F&O contracts in the particular stock when placed under the F&O ban period by the stock exchanges.
Also Read: Outlook 2024: From capex cycle to PLI boost, here are the 6 key themes for Indian markets in 2024
Day trading stocks for today
On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi, Sumeet Bagadia, Executive Director at Choice Broking, and Kunal Kamble, Senior Technical Analyst at Bonanza Portfolio —recommended six stocks to buy today.
Sumeet Bagadia's intraday stocks for today:
1.Cipla: Buy Cipla in cash at ₹1,281.55 with a stop loss of ₹1,245 at a target price of ₹1,340
Cipla is presently trading at 1,281.55 levels. On the daily chart, the stock has formed a strong bullish candle, signifying a resurgence of strength in its price action. A robust support level is situated at 1,245 levels, which conveniently aligns with the 20-Day Exponential Moving Average (EMA). This confluence of support factors enhances the stock's stability and resilience.
Furthermore, CIPLA is trading above all the important moving averages, which underscores its overall bullish posture and trend. The Relative Strength Index (RSI), a momentum indicator, is hovering around 64 levels. This RSI reading suggests that the stock possesses considerable strength without being excessively overbought. It signifies a healthy and sustainable uptrend.
A minor resistance level is noticeable in the vicinity of 1,285 levels. Should the stock successfully surpass this resistance, it has the potential to advance towards the target level of 1,340. This could present a favourable trading opportunity for investors and traders alike. Based on the above analysis we recommend buying CIPLA at CMP of 1,281.55 with a SL of 1,245 for the target of 1,340.
2.Oracle Financial Services Software (OFSS): Buy OFSS at ₹4,471 with a stop loss of ₹4,340 at a target price of ₹4,740
OFSS, currently trading at ₹4,471, has recently broken out of cup and handle pattern, indicating a strong uptrend. The immediate resistance is near the ₹4,600 level, and the current price is exhibiting strong bullish momentum, expected to continue towards the ₹4,740 level. On the flip side, there is strong support near ₹4,340.
Moreover, OFSS is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement.
The Relative Strength Index (RSI) is presently at 68.3, showing an upward trajectory and indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that OFSS may have the potential to reach a target price of ₹4,740 in the near term.
To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹4,340 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of ₹4,400.
Overall, considering the technical analysis and current market conditions, OFSS presents a promising buying opportunity for those aiming for a ₹4,740 price target, provided that prudent risk management measures are in place.
Ganesh Dongre's intraday stocks for today:
3.Welspun Corp: Buy Welspun Corp at ₹574 with a stoploss of ₹560 at a target price of ₹590
In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 590 so, holding the support level of 560 this stock can bounce toward the 590 level in the short term, so the trader can go long with a stop loss of 560 for the target price of 590.
4.Nykaa: Buy Nykaa at ₹170 with a stop loss of ₹165 at a target price of ₹180
On the short-term chart, he stock has shown a bullish reversal pattern, so holding the support level of 165. this stock can bounce toward the 180 level in the short term, so the trader can go long with a stop loss of 165 for the target price of 180.
Support - 21,500/21,400
Resistance - 21,850/21,900.
Kunal Kamble's intraday stocks for today:
5. Mahindra Logistics: BUY| Buying range: Rs.432-434 Target RS. 465|Stop Loss 416
Mahindra Logistics has given a breakout of Resistance and close stronger with increase in volume indicating bullishness in the security. Price has close above Fast (50) Ema and Slow (200) Ema indicating a positive move in the security’s trading in higher zone indicates bullishness.
6.Glaxosmithkline Pharmaceuticals Ltd: BUY| Buying range: Rs.2,045-2,050 Target Rs. 2,350. |Stop Loss Rs. 1,900
Glaxo Smith has given a breakout of Rectangle Pattern on a Daily time frame on the upside indicating an uptrend. The burst in volume during the current week suggests increased buying interest at the current price levels, which further reinforces the positive outlook for security.
Price is trading above Fast (50) EMA and Slow (200) EMA indicating uptrend. Additionally, the breakout in the Relative Strength Index (RSI) supports the upside move, confirming the strength of the current trend and implying the potential for further price appreciation. The DMI+ is positioned above DMI-, confirming the presence of a positive trend, while the ADX trading above DMI- reflects the underlying strength in the ongoing move.
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.
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