Day trading guide for today: Infosys, Yes Bank, Tata Power among intraday picks

Yesterday, better-than-expected CPI inflation data fuelled a favorable rally in Indian markets with IT stocks finally halting their 7-day losing streak and PSU banks extending their gains furthermore. Sensex stayed above the 62,500 mark and Nifty 50 held over 18,600 — indicating the beginning of improvement from the past few days’ selloffs.

Sensex surged by 402.73 points or 0.65% to close at 62,533.30. Meanwhile, Nifty 50 settled at 18,608 higher by 110.85 points or 0.6% on Tuesday. After seven consecutive days of downfall, IT indexes on both BSE and NSE have climbed by over 1.1% each. Nifty PSU Bank climbed over 3.8%, while private banks, financials, auto, and capital goods stocks also recorded notable upside. Overall, Bank Nifty gained nearly 238 points. Furthermore, at the interbank forex market, the Indian rupee dropped to end at 82.8050 against the US currency compared to the previous day’s closing of 82.53.

Top bulls were IndusInd Bank, Bajaj Finance, Infosys, HCL Tech, M&M, TCS, Tech Mahindra, Bajaj Finserve, and Ultratech Cement were top gainers.

US inflation data which came late yesterday stood at around 7.1% — far lower than the consensus estimate of 7.3%. This brings a sign of relief among investors as they gauge a 50 bps hike from Fed in the upcoming policy — which would be lower compared to three consecutive 75 bps rate hikes in the past policies.

In the early deals on Wednesday, broader counterparts in Asia such as Hong Kong, Japan, South Korea, and Australia shares witnessed an upside, alongside US equity futures. However, mainland China stocks were on a volatile note. On this day, among the most-awaited key factor would be US Fed’s stance on inflation going forward, economic outlook, and their rate outcomes. The majority are expecting a rise in Asian stocks after easing the US inflation print.

Meanwhile, Sensex and Nifty 50 have already reacted positively after India’s consumer price index (CPI) inflation eased to an 11-month low at 5.88% in November — which is for the first time below RBI’s upper tolerance limit since December last year. US inflation data and expectations of a smaller size rate hike from the Fed are likely to sway sentiments today.

According to Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, Nifty extended the gains further after the decent pullback witnessed from the 18350 zone and is regaining strength with most of the heavyweight stocks like RIL, Infosys, and TCS, M&M, ONGC, ITC, and Bajaj Finance showing positive momentum pickup improving their trend.

Giving an outlook for Wednesday’s trading session, Parekh said, BankNifty which has already indicated strength is gradually on the rise and has almost touched the 44000 level with upside targets expected at 45500-46000 levels. The overall bias has started improving upside movement quite anticipated and retest the previous peak zone of 18816 in the coming days. The support for the day is seen at 18500 while the resistance is seen at 18750. BankNifty would have a daily range of 43600-44500 levels.

That being said, Parekh expects Nifty 50 to find support around 18500/18450 while resistance is seen at 18750/18800. Meanwhile, Bank Nifty is expected to have support around 43600/43550 levels and resistance is seen around 44500/44550.

Here are the intraday calls by experts for Wednesday:

, Vice President – Technical Research, Prabhudas Lilladher:

– Buy Naukri (Info Edge) at ₹4160 with a stoploss of ₹4100 for a target price of ₹4280

– Buy Bajaj Finance at ₹6620 with a stoploss of ₹6530 for a target price of ₹6800

Anuj Gupta, Vice President -Research at IIFL Securities

– Buy Yes Bank for a stop loss of ₹16 and a target price of ₹30

– Buy Suzlon Energy with a stop loss of ₹8 for a target price of ₹13

Ravi Singh, Vice President and Head of Research, Share India

– Buy Infosys at ₹1570 for a target price of ₹1600 with a stop loss of ₹1550

– Buy Tata Power at ₹220 for a target price of ₹235 with a stop loss of ₹210

Sumeet Bagadia, Executive Director at Choice Broking

– Buy SBI Life Insurance with a stop loss of ₹1260 for a target price of ₹1300-1320

– Buy Cipla with a stop loss of ₹1090 for a target price of ₹1130-1140

Ravi Singhal, CEO, GCL

– Buy Federal Bank at ₹136 with a stop loss of ₹135 for a target price of ₹144

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.