Day trading guide for today: 6 stocks to buy or sell today — 6th January

Day trading guide for today: On account of weak global cues as minutes from the Federal Reserve’s meeting sounded a cautious tone on interest rates, Indian stocks fell for second straight session on Thursday. Nifty 50 index lost 50 points and closed at 17,992 mark, 30-stock BSE Sensex dipped 304 points and closed at 60,353 whereas Nifty Bank index finished 350 points lower at 42,608 levels. Capital goods and FMCG stocks attracted buying interest whereas broad markets improved over the previous session with advance decline ratio rising to 0.92:1.

According to stock market experts, a reasonable negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates downside continuation pattern amidst volatility. The upside recovery of Thursday signal that buying is expected to emerge from near the lower support of around 17,750 to 17,800 levels.

Day trading guide for stock market today

Speaking on intraday trading strategies, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “Negative chart pattern like lower tops and bottoms continued on the daily chart and the Nifty is expected to revisit the recent swing lows of 17,775 levels in the short term. Any upside bounce from here could encounter resistance around 18,100 levels.”

On reasons for continued correction in markets, Ruchit Jain, Lead Research at said, “The correction has been mainly due to FII selling as their ‘Long Short Ratio’ has declined from 57 percent at the start of January series to around 36 percent. They also have sold equities in the cash segment and a combination of FIIs selling in the cash segment along with short formations in index futures has generally been negative for the markets.”

Advising ‘buy on dips’ strategy, Ruchit Jain said, “If we look from a technical perspective, Nifty is trading around a rising trendline support and after the recent corrective phase in last one month, the momentum readings on the lower time frame charts have entered the oversold zone. Hence, it does not look to be an appropriate zone to form shorts and in fact, one can take some contra trade and look for buying opportunities. The swing low of 17,770 would be seen as important support for Nifty 50 index and only if we break that support, then we would see the momentum accelerating on the downside. Hence, till this support is intact one can look for buying opportunities in intraday declines.”

“The Bank Nifty index which had outperformed in last few months witnessed a sharp correction in intraday today. We may see some stock specific moves from stocks within this sector in the near term while some of the other sectors may take the leadership in the short term. Traders are advised to look for stock specific buying opportunities in stocks which have shown relative strength in the last one week,” said Ruchit Jain.

Nifty call put option data

On Nifty call put ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “Nifty weekly expiry option chain reflects 18000 straddle being aggressive, each with nearly 50 lakh OI shares. PE writers adding their positions all the way down till 16500 of over 35 lakh OI Shares followed by 17500 PE with over 30 lakh OI shares. CE writers position active above at all strikes till 19000CE with over 50 lakh oi shares being the highest followed by 18200CE of over 40 lakh OI shares. PCR_OI at 18000 is 0.89 which is a crucial level for the index.”

Bank Nifty call put option data

“Bank Nifty weekly expiry option chain witnesses PE writers position at various strikes of 41500PE with over 10 lakh OI shares and 42000/ 42500 PE each with 9 lakh OI shares. CE writers strongest position at 43000 strike with over 20 lakh OI shares and 43500CE of 15 lakh OI shares. Bank Nifty indicates a broad trading range from 42500- 44000 levels,” said Rout.

Day trading stocks to buy today

Sharing intraday stocks for today, share market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended 6 stocks to buy today.

Sumeet Bagadia’s stock picks for today

1] ITC: Buy at CMP, target 340 to 350, stop loss 326

2] Larsen & Toubro or LT: Buy at CMP, target 2125 to 2150, stop loss 2050

Anuj Gupta’s stocks to buy today

3] Wipro: Buy at CMP, target 410, stop loss 365

4] Tata Steel: Buy at CMP, target 125, stop loss 109

Ganesh Dongre’s intraday stocks for today

5] Polycab: Buy at rs 2650, target 2740, stop loss 2580

6] Max Financial Services Ltd or MFSL: Buy at 735, target 770, stop loss 715.

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 taking any investment decisions.

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