Trade Setup | Things To Know Before Market Opening - 05 Jun 2023 Monday

Day trading guide for today: On account of strong global cues after signs of US Fed not lifting interest rate in upcoming FOMC meeting, Indian stock market snapped two days losing streak and ended marginally higher on Friday. 50-stock index Nifty gained 46 points at 18,534 levels, 30-stock index BSE Sensex added 118 points and closed at 62,547 mark whereas Bank Nifty index finished 147 points higher at 43,937 levels.

On outlook for HDFC Securities said, "Nifty as per weekly chart formed a small negative candle with minor upper and lower shadow. By considering previous consolidations in the recent past and the negations of such bearish patterns subsequently, one may expect upside bounce in the market in the coming week. Immediate support for NSE Nifty is placed at 18400-18300 band and the next upside hurdle is around 18650-18850 levels."

On FII DII data, Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities said, "The FPI Long-Short Ratio, a sentiment indicator, has fallen from 60.21% on Monday to 45.60% on Thursday, indicating that the FPIs now hold more short positions relative to long positions. The India VIX, also known as the fear index, fell by 6.51% during the week, from 11.90 to 11.12." Ramani went on to add that for the Nifty to resume uptrend, it needs to give a decisive close above 18,600 levels.

Intense Technologies Ltd is expected to remain in focus today as the company board is going to consider and approve dividend payment to its shareholders. Apart from this, shares of Shyam Metalics and SKM Engg Products are going to trade ex-dividend in stock market today. In stock split segment, market is expected to remain vigilant about Hardwyn India shares as the stock is going to trade ex-split today in 1:10 ratio. The stock will trade ex-bonus as well. Hardwyn India Ltd has announced issuance of bonus shares in 1:3 ratio means one bonus share will be awarded to holding three shares of the company to its eligible shareholders.

On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended six stocks to buy today.

1] Canara Bank: The stock is moving with Higher High- Higher low formation in daily charts. Also the stock has been moving in a rising channel indicates the bullishness in price action. Stock is trading higher than 20 day moving averages. The price is trading above the middle band of Donchian Channel indicates a short term bullish trend. Sustaining high volume, points out buying interest among the short term traders. Hence, based on the above technical structure one can initiate a long position at CMP of ₹313.7. Closing and sustaining above ₹316 will lead towards ₹323 levels in coming days. SL can be kept as ₹307.

2] Larsen and Toubro or LT: Buy LT in cash @ 2234.55 SL 2170 TGT 2330

LT share price is trading at 2234.55 levels. On a closing basis, the stock has respected the support levels and hasn't closed below its strong support levels of 2170. The stock has surpassed a crucial resistance of 20 and 50 Day EMA levels today itself indicating strength. LT shares can now progress even further towards all-time high levels and beyond. The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 49 levels.

3] JSW Steel: Buy at CMP, target ₹750, stop loss ₹684.

The stock has given breakout on chart pattern and it has been witnessing substantial rise in trade volume that augurs further upside movement in the scrip.

4] Mahindra & Mahindra (M&M): Buy at CMP, target ₹1390, stop loss ₹1314.

Stock has recently given breakout at ₹1325 on closing basis and it has formed higher top higher bottom on chart pattern.

5] Jindal Steel: Buy at ₹526, target ₹545, stop loss ₹508.

The stock has formed a double bottom pattern on the daily chart, where the stop loss is ₹508 and the target is ₹545.

6] Axis Bank: Buy at ₹926, target ₹950, stop loss ₹910.

This bank stock has a short-term reversal pattern from ₹910 to ₹912 level, and RSI is also turning up. So, a short-term bounce is possible till ₹950 in a week.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of PickStock. We advise investors to check with certified experts before taking any investment decisions.