Day trading guide for today: Six buy or sell stocks for Wednesday —August 9
8 min read 09 Aug 2023, 06:13 AM ISTDay trading stocks: Market experts have recommended six stocks to buy today —Max Financial Services, HDFC Life Insurance, Mastek, Adani Ports, Trent, and Eicher Motors.
PremiumDay trading guide for today: Domestic equity benchmarks Sensex and Nifty ended lower during Tuesday’s session on weak global cues, even as the second-rung midcap and smallcap indices scored gains during the session. China's weak economic data weighed on the overall sentiment in a sign of sluggish post-COVID recovery.
Sensex opened 95 points higher at 66,048.81 against the previous close of 65,953.48 but failed to hold altitude, falling about 201 points to hit the intraday low of 65,752.63. The index closed 107 points, or 0.16 per cent, lower at 65,846.50 while the Nifty ended 26 points, or 0.13 per cent, lower at 19,570.85, both snapping their two-day winning run.
Mid and smallcaps outperformed the benchmark Sensex. The BSE Midcap index ended with a gain of 0.15 per cent while the Smallcap index rose 0.25 per cent. Nifty PSU Bank index surged 3.37 per cent, followed by Nifty Media (up 0.74 per cent) and Nifty Pharma (up 0.64 per cent).
Wipro, Tech Mahindra, Cipla, Hero MotoCorp emerged as the top gainers on Nifty50, while JSW Steel, Mahindra & Mahindra, Adani Enterprises were among the top drags on Tuesday.
Foreign institutional investors (FIIs) continued their selling streak offloading ₹711 crore, while the domestic institutional investors (DIIs) turned net buyers and invested ₹537 crore during the session - mitigating the downside risk.
Day trading guide for stock market today
On the outlook for Nifty, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services observes that after opening on a positive note, Nifty edged lower and traded in a narrow range to close with a marginal loss of 26 points at 19,571 levels.
‘’As we move towards the end of Q1FY24 results season, action will shift to macro factors, with many economic data due for release during the week. Investors await key inflation data from US, India and China for further market direction. Also locally, RBI meeting kicked off today, the results of which would be declared on Thursday. We thus expect market to consolidate, while interest sensitive sectors are likely to be in focus,'' said Khemka.
Rupak De, Senior Technical Analyst at LKP Securities adds, ‘’Nifty index displayed volatility but managed to close above the significant 21EMA moving average and maintained support above 19,500 points. A positive trend is anticipated as long as the index holds above 19,500, with resistance at 19,700 and potential for a rally towards 20,000.''
On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities observes that the index is currently experiencing a struggle between the bulls and bears, resulting in a consolidation phase.
‘’There is a visible support level at 44,800, and if the index breaks below this level, it could trigger further downside movements towards 44,600.On the upside, a resistance level is apparent at 45,150. If the index successfully breaks above this resistance level, it may pave the way for a clearer upward move towards levels around 45,400-45,500,'' said Shah.
Global Cues
China's July oil imports were down 18.8 per cent from the previous month to the lowest daily rate since January, but still up 17 per cent from a year earlier. Overall, China's imports contracted by 12.4 per cent in July, far steeper than the expected five per cent drop. Exports fell by 14.5 per cent, compared with a fall of 12.5 per cent tipped by economists.
The US Energy Information Administration (EIA) projected GDP growth of US to rise by 1.9 per cent in 2023, up from 1.5 per cent in a previous forecast. The EIA also expects Brent crude oil prices to average $86 in the second half of 2023, up about $7 from the previous forecast.
The US crude production is expected to rise by 850,000 barrels per day to record 12.76 million bpd in 2023, overtaking the last peak at 12.3 million bpd in 2019, according to a report by news agency Reuters.
Crude prices have been rising since June, primarily because of extended voluntary cuts to Saudi Arabia's production as well as increasing global demand, according to the EIA.
Stocks to watch today
Shares of Abbot India, Bata India, Berger Paints, IRCTC, Zee Entertainment Enterprises, Bombay Dyeing, Max Financial Services, Tata Power, Thomas Cook India, Trent, among others will be in focus today as the companies will be reporting their April-June quarter results for fiscal 2023-24 (Q1FY24).
Shares of Oil India, Coal India, IRCON International, Jet Airways, Chambal Fertilisers, EIH Hotels, Happiest Minds, among others will also be in focus today as these firms had released their Q1FY24 results on Tuesday.
F&O ban list
Chambal Fertilizers and Chemicals, Delta Corp, Balrampur Chini Mills, Hindustan Copper, Indiabulls Housing Finance, and India Cements Ltd are the six stocks that are a part of the F&O ban list by the stock exchange for Wednesday.
The securities have been put on ban under the F&O segment as they have crossed 95 per cent of the market-wide position limit (MWPL), according to the NSE. However, the stocks will be available for trading in the cash market.
Day trading stocks for today
On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi, Kunal Shah, Senior Technical and Derivative Analyst at LKP Securities, and Sumeet Bagadia, Executive Director at Choice Broking— recommended six stocks to buy today.
Ganesh Dongre's intraday stocks for today:
1.Max Financial Services Ltd: Buy Max Financial Services at ₹810 with a stoploss of ₹785 at a target price of ₹830
‘’In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 835. So, holding the support level of 785 this stock can bounce toward the 835 level in the short term, so the trader can go long with a stop loss of 785 for the target price of 835,'' said Dongre.
2. HDFC Life Insurance Company: Buy HDFC Life at ₹646 with a stop loss of ₹632 at a target price of ₹665
‘’On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of 632 this stock can bounce toward the 665 level in the short term, so the trader can go long with a stop loss of 632 for the target price of 665,'' said Dongre.
Sumeet Bagadia's intra day stocks for today:
3.Trent: Buy Trent at ₹1,720 with a stop loss of ₹1,690 at a target price of ₹1,772
Trent Ltd currently trading at 1,713, has demonstrated a commendable level of stability over the past two months, maintaining a consistent range between 1,660 and 1,760. This consolidation phase reflects a robust foundation for potential future movements. Notably, the stock's recent trend suggests a promising scenario, with the potential for an upward acceleration once the 1,725 resistance level is breached.
The Relative Strength Index (RSI) currently stands at 53, displaying a positive upward trajectory. This signifies increasing buying interest and the possibility of further price gains. Moreover, Trent's trading performance is notably supported by its position above key moving averages, including the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), indicating a sustained bullish sentiment.
Given the aforementioned technical indicators, a strategic entry point emerges at 1,720, in anticipation of a potential price target of 1,772. This attractive risk-reward proposition is underlined by the application of a stop-loss at 1,690, safeguarding against unforeseen downside risks.
The combination of favourable technical conditions, including the RSI trend, moving averages alignment, and the impending breakthrough of the 1,725 resistance level, collectively supports the rationale for considering Trent Ltd. as a compelling buy opportunity at the designated level.
4.Eicher Motors: Buy Eicher Motors at ₹3,372 with a stop loss of ₹3,280 at a target price of ₹3,550.
Eicher Motors is currently trading at 3,372 levels. On weekly charts the stock has formed a bullish candle after forming a base near to 3,310 levels which is also 200 Day EMA levels. On daily charts the stock has formed a hammer pattern which indicates bullishness in the stock.
RSI indicator is comfortably trading at 49 levels indicating strength. The stock has surpassed 20 Day EMA levels. A minor resistance is placed at 3,395 levels which is also close to 50 Day EMA levels. Once stock surpasses the above mentioned resistance it can move towards the target of 3,550.
Based on the above analysis, we recommend purchasing EICHERMOT at the CMP of 3,379.70; with a medium-term target price of 3,550; if the price closes below 3,379.70; our analysis will be considered invalid.
Kunal Shah's intraday stocks for today:
5.Mastek: Buy Mastek at ₹2,040 with a stoploss of ₹1,950 at a target price of ₹2,200/2,350
Mastek stock has demonstrated a promising reversal from the support zone around 1,950, suggesting this level will likely serve as a strong cushion for the bulls. The momentum indicator, RSI, has provided a positive crossover, signifying a buy signal and indicating increasing upward momentum.
The stock is poised on the brink of a potential breakout from the 20-day moving average (20DMA), which could provide additional strength to its upward movement. For traders and investors, the stock's potential upside targets lie at 2,200 and 2,350, indicating the possibility of further price appreciation.
6. Adani Ports and Special Economic Zones: Buy Adani Ports at ₹785 with a stoploss of ₹770 at a target price of ₹830/855
The stock Adani Ports appears to have undergone a consolidation breakout on the daily chart, indicating a potential bullish trend. Additionally, the stock is currently trading within a rising wedge pattern and maintaining its position above a critical moving average.
The Relative Strength Index (RSI) has exhibited a bullish crossover and is on the rise. Looking ahead, there is a possibility that the stock could move towards the 830/855 level on the higher end. In terms of support, there is a notable level at 770.
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
