According to stock market experts, a small negative candle was formed on the daily chart with a long lower shadow. This market action indicates the chances of another round of pullback rally in the short term. But, there is no confirmation of any bottom reversal as of now. Volumes on the NSE have recovered back to their recent average while the advance decline ratio is down, suggesting that the broader markets are still under a lot of pressure. Day trading guide for Thursday: The Indian stock market once again ran into selling pressure at higher levels in the morning session on Wednesday, though it bounced well from the intraday lows. The Nifty 50 index breached the 16000 mark once, but since the momentum reading was quite oversold on the intraday chart, a pullback was witnessed in the end to recover some of the losses. The FNSE Nifty ended 72 points lower at 16,167, whereas the BSE Sensex shed 276 points and closed at 54,088 levels. However, the Nifty Bank index scaled 210 points upside and closed at 34,693 mark.
Day trading guide for today's stock market
Speaking on the day trading guide for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty continues to be negative." Wednesday's sharp upside recovery could raise hopes for bulls to make a comeback. But, the recent display of a lack of strength to sustain the highs could mean the presence of strong resistance around 16250 to 16300 levels for another round of sell on rise opportunity. Immediate support for NSE Nifty is placed at 16,000 levels. "
On Nifty getting outperformed by the Bank Nifty index, Ruchit Jain, Lead Research, 5paisa.com said, "The Bank Nifty has shown relative outperformance to Nifty since the last couple of sessions." However, there are no signs of change in the trend yet, and thus it could just be a temporary outperformance till the pullback lasts. The mid-cap as well as small-cap space continues to underperform and is likely to see more corrections in the near term. Hence, traders should avoid bottom fishing until the trend reverses. "
Advising traders and investors to remain insulated from carried away sentiments in any possible bounce back from current levels, Ruchit Jain of 5paisa.com said, "The short term trend continues to remain negative, however, due to oversold set ups on the intraday charts post a sharp correction, we are likely to see some in between bounce backs." Traders are advised not to get carried away with such a pullback and continue to trade with a cautious approach until there’s a change in trend or the data. "
Day trading stocks for today.
On day trading stocks to buy today, stock market experts — Rajesh Bhosale, Technical Analyst at Angel One Ltd; Mehul Kothari, AVP — Technical Research at Anand Rathi; Anuj Gupta, Vice President — Research at IIFL Securities; and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended six stocks to buy or sell today.
Rajesh Bhosale's day trading stocks
1] Axis Bank: Buy around 672, target 707, stop loss 654
2] ABB India: Buy around 2270, target 2410, stop loss 2190
Mehul Kothari's intraday stocks for today
3] Reliance Industries Ltd: Buy above 2480, target 2600, stop loss 2420
4] Voltas: Buy above 995, target 1050, stop loss 965
Anuj Gupta's stock of the day
5] Shree Renuka Sugars: Buy at CMP, target 54, stop loss RS 37.
Avinash Gorakshkar's stock pick for today
6] DLF: Momentum buy at CMP, target 350, stop loss 312.