Today’s day trading guide indicates that the Indian stock market experienced a decline in the previous session due to weak global cues. The Nifty 50 index lost 148 points, closing at 21,517, while the BSE Sensex dropped 535 points to finish at 71,356. The Nifty Bank index went down by 56 points, ending at 47,704. Despite this, broad market indices closed positively, with an advance-decline ratio of 1.26:1.
The market saw profit booking driven by weak global cues and a decline in India’s PMI manufacturing to an 18-month low of 54.9 in December. The Nifty declined for the second consecutive day, closing with a loss of 140 points at 21,526. Sector-wise, there was mixed performance, with buying observed in Realty, PSU Bank, and Pharma.
Positive Q3FY24 updates from PNB and Bank of Maharashtra boosted the PSU Bank Index by 2%. Railway stocks also rallied after the government announced the scaling up of Amrit Bharat trains. Globally, investor caution prevailed after US manufacturing data showed a contraction.
Looking at the outlook for today, the short-term trend for the Nifty 50 index remains negative. A move below 21,500 could open the way to the next downside levels of 21,255 (20-day EMA) and 20,980. Immediate resistance for Nifty today is placed at 21,670 levels. For Bank Nifty, it closed at 47,705, and the support at 47,500 has strengthened. A hammer candle on the daily chart indicates buyer interest at lower levels, but an intraday fall is possible if put writers exit and call writers enter at 47,500 Strike.
In terms of Nifty Call Put Option Data, major total Call open interest is at 21,600 and 21,700 strikes. Major Call open interest addition was observed at 21,600, with a significant addition of 206,142 contracts. On the Put side, major total Put open interest is at 21,500 and 21,400 strikes, with significant additions at 21,500 and 21,400.
For Bank Nifty Call Put Option Data, major total Call open interest is at 48,000 and 48,500 strikes, with major additions at 47,700 and 48,000 strikes. Major total Put open interest is at 47,500 and 47,000 strikes, with a significant addition at 47,700.
In terms of FII and DII data, FIIs sold shares worth ₹666.34 crore in the cash segment and ₹618.54 crore in F&O futures index. DIIs also sold shares, with ₹863 crore in the cash segment and ₹79,382.77 crore in F&O index futures.
Seven stocks, including Balrampur Chini Mills, Delta Corp, Hindustan Copper, IEX, National Aluminium, SAIL, and ZEEL, have been put under the F&O ban list.
For intraday trading, various experts recommend the following stocks:
1. IRCTC: Buy at ₹899.25, target ₹935, stop loss ₹868.
2. Trent: Buy at ₹3058, target ₹3210, stop loss ₹2980.
3. Hindustan Petroleum: Buy at ₹422, target ₹440, stop loss ₹412.
4. CESC: Buy at ₹135, target ₹142, stop loss ₹130.
5. Greaves Cotton: Buy at ₹161 to ₹162, target ₹172.50, stop loss ₹155.
6. Borosil Renewables: Buy at ₹466 to ₹477, target ₹500, stop loss ₹444.
These recommendations are based on technical analysis and market trends, providing potential entry and exit points for intraday traders.
