Day trading guide for Wednesday: 8 stocks to buy today - December 21
2 min read 21 Dec 2022, 07:01 AM ISTOne may expect further upside in the short term towards the lower top formation, said analysts on Nifty
PremiumEquities pared most of the losses in the final hour of a volatile session on Tuesday, amid buying in index majors Reliance Industries Ltd (RIL) and TCS despite lacklustre global cues. The BSE Sensex ended 103.90 points lower at 61,702. Nifty dipped 0.19% to close at 18,385. In the broader market, the BSE midcap gauge declined 0.27% and the smallcap index dipped 0.02%.
Day trading guide for stock market today -
"The negative chart pattern of lower tops and bottoms is intact and the low of Tuesday at 18202 could be considered as a new lower bottom of the sequence. Hence one may expect further upside in the short term towards the lower top formation. Immediate resistance is at 18450-18500 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
"Nifty with the profit booking witnessed touched the intraday low near 18200 zone and gave a decent pullback to recover significantly with IT stocks and RIL helping the index to regain the lost momentum and closed near the 18400 zone with the bias to a little extent improving and anticipating for further rise in the coming session. The overall bias is maintained stable with the major support zone respected and further rise is anticipated in the coming sessions with 18650-18700 zone as the major resistance from hereon. The support for the day is seen at 18250 while the resistance is seen at 18500," said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher.
Derivatives market:
Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher said, "Markets have been on a weaker note after attempting the new all-time highs. Correction of nearly 4% from the highs was expected and now a pullback show should take place."
She added, Nifty weekly expiry option chain witnesses PE writers adding their positions of over 90 lakh shares OI at 18300PE, with close to 75 lakh shares OI at 18000PE and 18200PE strikes. Maximum fresh writing was seen at 18300PE - over 19 lakh shares as well. CE writers' maximum exposures lies at 18500/18600/19000 strikes- each with over 70 lakh shares OI overall. PCR_OI at 18300 is nearly 2, which should act as immediate support.
Further, Rout said, Bank Nifty- option chain on weekly basis reflects 43000PE holding the most exposure of 30 lakh shares OI, followed by 43200PE - over 20 lakh shares. CE writers active at 43500/44000 strikes - over 28 lakh shares OI each, which shows the tight trading range for the index going ahead.
Stocks to buy today as recommended by analysts -
Sumeet Bagadia, Executive Director at Choice Broking
Buy Ultracem, stop loss ₹7,000, target ₹7,250-7,300
Buy Intellect, stop loss ₹415, target ₹450-460
Vaishali Parekh, Prabhudas Lilladher
BUY CUMMINS, stop loss ₹1,470, target ₹1,525
BUY CANARA BANK, stop loss ₹317, target ₹335
Anuj Gupta, Vice President - Research at IIFL Securities
Buy SUZLON, stop loss ₹9.80, target ₹13
BUY RENUKA SUGAR, stop loss ₹56, target ₹68
Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi
BUY ICICI Bank at 910, stop loss ₹895, target ₹935
BUY WOCKHARDT at 226, stop loss ₹218, target ₹247
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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