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Day trading guide for Friday: 4 stocks to buy or sell today — 23 September


Day trading guide for Friday: Weakness with volatility continued on Thursday and key benchmark indices ended in red zone on second day in a row. Nifty 50 index lost 88 points and closed at 17,629, BSE Sensex dipped 337 points and closed at 59,119 whereas Bank Nifty index finished 572 points lower at 40,630 levels.

According to stock market observers, a small positive candle was formed on the daily chart at the lows, with upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern. Normally, such high wave pattern formation after a reasonable upside moves or declines more often acts as a reversal pattern, post confirmation. Hence, there is a possibility of an upside bounce in the short term.

Stock market today: Nifty, Bank Nifty outlook

“The short term trend of Nifty continues to be choppy. The formation of candle pattern at the supports on Thursday and the overall chart pattern signal a possibility of an upside bounce in the short term. Immediate support for NSE Nifty is placed at 17530 and the next overhead resistance to be watched at 17750 levels,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

On what is damaging bulls’ sentiment, Ruchit Jain, Lead Research at 5paisa.com said, “The Bank Nifty index corrected sharply as traders were seen unwinding positions in the space which had shown a relative outperformance in the recent past. The trigger for markets was led by the currency which had a breakout from the consolidation of the last few weeks and depreciated sharply to hit new lows. Our equity markets had recently outperformed the global markets mainly due to the outperformance in the INR inspite of the rising Dollar Index. This move in currency above 80 certainly does not bode well for the equity market and hence, the risk continues to remain high in the near term.”

Ruchit Jain went on to add, “The momentum readings on the Bank Nifty which has so far been the relative outperformer, too have now turned negative. The immediate support for the Bank Nifty index is placed around its ‘20 DEMA’ support of 40245 and a breach of this could then lead to further price-wise correction. Traders are advised to closely monitor the currency movement and the global markets which are likely to dictate near term moves.”

Nifty call put option data

Speaking on Nifty call put ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “Nifty Option chain for the weekly expiry reflects on a wide range in between 16000 to 19000 zones, as the max additions of contracts lies at 16000PE- more than 90 thousand contracts and 19000CE – more than 1.4 lakh contracts. The narrow range is well placed in between 17500-17700 zones, and any decisive breach on the either side will show more movement for the INDEX going ahead.”

Bank Nifty call put option data

“Bank Nifty Future Option chain reflects on PE writers being active at 40000/39500 strikes – overall above 50 thousand contracts each, with CE writers continue to be active aggressively all the way up till at 45000 strikes – highest fresh additions of more than 40 thousand contracts,” Shilpa Rout added.

Day trading stocks

On stocks to buy today, share market experts — Mehul Kothari, AVP — Technical Research at Anand Rathi and Ravi Singh, Vice President & Head of Research at Share India — listed out 4 buy or sell stocks for today.

Mehul Kothari’s stock recommendations

1] Tech Mahindra: Buy at 1049, target 1090, stop loss 1030

2] Gujarat Gas: Buy at 520, target 560, stop loss 500

Ravi Singh’s shares to buy today

3] Titan Company: Buy at 2740, target 2850, stop loss 2700

4] Ashok Leyland: Buy at 164, target 175, stop loss 161.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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