Trade Setup | Things To Know Before Market Opening - 04 Sep 2023 Monday

Day trading guide for today: On account of strong BSE Sensex gained 555 points and closed at 65,387 mark while Bank Nifty index finished 446 points higher at 44,436 levels.

Upstream oil companies were in the limelight as Brent crude surged to a 1-month high on the back of tighter US inventories and Russia signalled to curb oil export. Railway stocks continue to log smart gains on the back of a strong order book and rising allocation in the rail infrastructure. PSU banks saw fresh buying after rating agency Fitch affirmed ratings on India’s PSU Banks. However, broad market failed to outperform key benchmark indices. Small-cap index and mid-cap index surged 0.75 per cent on last trade session of the previous week.

On outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The short term trend of Nifty has turned up and one may expect further upside in the short term. The next overhead hurdles to be watched around 19,600 and 19,800 levels in the next couple of weeks. Immediate support for Nifty today is placed at 19,350 levels."

On outlook for Bank Nifty today, Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities said, "Bank Nifty bounced back from the 100-Day Exponential Moving Average of 43,930 for the second consecutive day and closed at 44,436, up 447 points. The level of 44,000 on the downside will act as a strong support for Bank Nifty. A close above today’s high of 44,569 will result in the resumption of an uptrend."

On outlook for stock market today, Siddhartha Khemka, Head - Retail Research at Motilal Oswal said, "Overall, we expect the market to trade in a range with sector- and stock-specific actions as the broader market momentum remains positive."

Market is expected to remain vigilant about the outcome of board meeting of Indian Link Chain Manufacturers Ltd and HP Adhesives Ltd as board of directors of the respective companies are going to consider and approve stock split today.

Among dividend stocks in September 2023, 13 dividend paying stocks are going to trade ex-dividend today. Those 13 stocks include Gravita India, Radiant Cash, Asian Hotel (E)Birla Cable, Vindhya Telelinks, etc.

One stock has been put in the list of F&O ban and that stock is Indiabulls Housing Finance.

On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi and Pravesh Gour, Senior Technical Analyst at Swastika Investmart — recommended six stocks to buy or sell today.

1] IndusInd Bank: Buy at ₹1416.55, target ₹1460, stop loss ₹1390.

IndusInd Bank share has bounced from the strong support of ₹1375, which is also the level of 50 Day EMA. The stock is currently trading at ₹1416.55, which is also above its 20 Day Exponential moving average (EMA). The stock has demonstrated strength as evidenced by the on-going volumes and upward movement of the stock. The RSI indicator is also comfortably trading at 55 levels, which will support the upward movement of the stock. The stock has a smaller resistance level around ₹1434, which is also the recent top. Once stock surpasses the above mentioned level the stock can move towards ₹1460 levels and above.

2] Mahindra & Mahindra (M&M): Buy at ₹1591, target ₹1652, stop loss ₹1550.

M&M share price is currently experiencing robust trading activity, with its shares reaching a significant value of ₹1596. Notably, M&M has demonstrated a notable increase in trading volume, and its closing price has consistently remained above the ₹1550 level for the past 3 days, indicating a favorable trend. Furthermore, the Bollinger Bands, a technical indicator that measures volatility, are displaying an expansion for M&M. This suggests that the stock is experiencing increased price volatility, which can present potential trading opportunities for investors. It’s a good buy for the targets of ₹1652 with SL of ₹1550.

3] Balaji Telefilms: Buy at ₹72, target ₹77, stop loss ₹68.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till ₹77. So, holding the support level of ₹68 this stock can bounce toward the ₹77 level in the short term. Hence, the trader can go long with a stop loss of ₹68 for the target price of ₹77.

4] United Spirits or McDowell-N: Buy at ₹1012, target ₹1040, stop loss ₹998.

On the short-term chart, the stock has shown a bullish reversal pattern. So, holding the support level of ₹998 this stock can bounce toward the 1040 level in the short term. Hence, the trader can go long with a stop loss of ₹998 for the target price of ₹1040.

5] Ruchira Papers: Buy at ₹150, target ₹158, stop loss ₹146.50.

The counter is continuing its higher highs and higher lows formation and has given a breakout of a flag formation with huge volume.

6] Latent View Analytics: Buy at ₹455, target ₹470, stop loss ₹445.

It has witnessed a breakout of the triangle formation with strong volume. It has retested its previous breakout level at ₹417 and starts a new leg of the rally towards ₹470+.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of PickStock. We advise investors to check with certified experts before taking any investment decisions.