Day trading guide for stock market today: Amid the Iran-Israel war and FII's selling, the Indian stock market witnessed sharp selling on Friday last week. The Nifty 50 index corrected 234 points and ended at the 22,519 level, the BSE Sensex nosedived 793 points and closed at the 74,244 mark, and the Bank Nifty index shed 422 points and finished at the 8,564 level. In the broad market, the small-cap index dipped 0.60 percent whereas the mid-cap index went down 0.49 percent.
After Israel's counterattack on Iran, the geopolitical tension in the Middle East has further escalated. Iran fired more than 300 drones and missiles at Israel, which Tehran said was in response to the April 1 strike on its consulate in Syria. Almost all Iranian drones and missiles were shot down by Israeli, US, and allied forces before they reached their targets.
To stop further escalation of the Middle East crisis, US Secretary of State Antony Blinken on Sunday reached out over the phone to the foreign ministers of Jordan, Saudi Arabia, Turkey, and Egypt, while Defense Secretary Lloyd Austin had calls with his Saudi and Israeli counterparts, amid signs of an escalating crisis in the Middle East following Iran's strikes on Israel.
On the outlook for the Nifty 50 today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said, "A small negative candle was formed on the weekly chart with upper shadow, which is indicating a reversal pattern formation as per daily as well as weekly timeframe charts. This is not a good sign for bulls."
On the outlook for the Bank Nifty today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index experienced significant selling pressure, marking a return of bearish momentum after a prolonged period. The index is currently facing strong resistance at the 49,000 mark, and only a decisive close above this level could revive the upward trend toward the 50,000 mark. Immediate support for the index is established at 48,000, where the highest open interest on the put side has been observed. A breach below this level could intensify the selling pressure."
On factors that may dictate the Indian stock market today, Siddhartha Khemka, Head - Retail Research at Motilal Oswal said, "The uncertainty over the US Fed rate cut timing and concerns about rising tensions between Iran and Israel led to a decline in global markets. The rise in bond yields due to hotter-than-expected US inflation and amendment in the India-Mauritius tax treaty likely to impact FII flow dampened the sentiments. We expect markets to remain volatile in the near term given the global concerns and the start of an election next week. With the onset of the earning season, the focus will more shift toward domestic cues along with macro data points. Markets on Monday will react to India’s inflation data and TCS Q4 numbers which will be released today."
On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher; and Virat Jagad, Technical Analyst at Bonanza Portfolio — recommended seven stocks to buy or sell today.
1] IRCTC: Buy at ₹1057.65, target ₹1103, stop loss ₹1030.
IRCTC share price is currently trading at ₹1057.65. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of ₹1045 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹1103 levels. On the downside, substantial support is evident near ₹1030.
2] Aegis Logistics: Buy at ₹480.25, target ₹502, stop loss ₹464.
Aegis Logistics share price has recently exhibited a robust breakout from the critical resistance zone of ₹455 to ₹472 on the daily chart, consolidating the move with higher highs and higher lows. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.
3] Nahar Industrial: Buy at ₹128.55, target ₹140, stop loss ₹125.
The stock after a good recovery has consolidated and once again has picked up moving past the significant 50EMA level of ₹128 to improve the bias. The RSI on the rise and improving has indicated strength to continue with the upward move. We suggest buying the stock for an initial target of ₹140 level keeping the stop loss of ₹125 level.
4] Westlife Foodworld: Buy at ₹826, target ₹862, stop loss ₹810.
The stock has witnessed a decent pullback to improve the bias and recently moving past the 50EMA level and the 100 period MA at ₹815 level has further strengthened the trend. The RSI well placed and on the rise has shown improvement indicating strength and further upward movement is anticipated. We suggest buying the stock for an initial target of ₹862 level keeping the stop loss of ₹810 level.
5] Chalet Hotels: Buy at ₹875.75, target ₹912, stop loss ₹858.
The stock has indicated a higher bottom formation on the daily chart taking support near the ₹845 zone and with a pullback witnessed has improved the bias to anticipate for further rise in the coming sessions. The RSI also indicates a trend reversal has signaled a buy and has further upside potential to carry on with the positive move. We suggest buying the stock for an initial target of ₹912 keeping the stop loss of ₹858.
6] Concord Biotech: Buy at ₹1560 to ₹1565, target ₹1680, stop loss ₹1500.
On the daily chart, Concord Biotech Ltd has broken out of a rectangle pattern, suggesting the stock might be heading up. The trading volume has increased significantly after the breakout, indicating more people are interested in buying the stock. To attract more buyers, the price needs to go above 1550 levels. Additionally, the Relative Strength Index (RSI) has also broken out, which usually means the stock could keep going up. The moving averages (21-day and 34-day) confirm this positive trend, with the faster one above the slower one. The Directional Indicator (DI) shows a positive trend too, with DI+ higher than DI-. The ADX (Average Directional Index) being higher than both DI's indicates a strong upward movement.
7] Hindustan Aeronautics Ltd or HAL: Buy at ₹12850 to ₹12875, target ₹13500, stop loss ₹12550.
HAL share price has recently shown a Flag and Pole pattern on its daily chart, typically signaling a continuous trend. In this case, the pattern indicates a bullish sentiment with eager buyers expecting the stock to rise. The stock price is currently above significant EMAs, reflecting a positive trend. The Slow EMA (50) aligns with the upward trend, reinforcing positivity. Additionally, the DMI+ surpasses DMI-, affirming the positive trend, while the ADX above DMI- underscores the strength in the ongoing upward movement. This suggests favorable prospects for Hindustan Aeronautics Ltd.
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 making any investment decisions.