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28 Mar 2024

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31 Jan 2024

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Trade Setup | Things To Know Before Market Opening - 14 Mar 2023 Tuesday



Day trading guide for today: Following weak global cues on Silicon Valley Bank (SVB) crisis and other banking worries in the US, Indian stock market failed to sustain its early morning gains and finally ended lower for third straight session on Monday. NSE Nifty crashed 258 points and closed at 17,154 while BSE Sensex nosedived 897 points and ended at 58,237 levels. Nifty Bank index lost 920 points and closed at 39,564 levels. Broad market indices fell more than the Nifty as investors unloaded the small and midcaps fearing longish period of downside move.

According to stock market experts, a long bear candle was formed on the daily chart with long upper shadow. This reflects display of sharp downside momentum in the market. The opening downside gap of 10th March has acted as a strong overhead resistance around 17,530 levels for Nifty. The said downside gap remains with partially filled.

Speaking on outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "Nifty has been in a sharp down trend and the negative chart pattern like lower tops and bottoms are in store. Present weakness seems to be in line with the lower bottom formation, but there is no confirmation of any lower bottom reversal pattern yet at the lows. The next downside levels on Nifty to be watched around 17,000 to 16,800 in the near term. Any upside bounce from here could find strong resistance around 17,300 to 17,350 levels."

Speaking on Nifty call put ratio, Rahul Ghose, Founder & CEO at Hedged said, "Nifty today formed a large bearish engulfing candle on its daily chart with aggravated selling once it broke its support at 17250. The Nifty index tried its best around 1pm to take support at this level, but it quickly fell through. There was a huge shorting of calls seen at the 17300, 17400 and 17500 levels with the highest OI at the 17500 CE level. In fact the total OI of sold calls is more than double that of sold put options currently. However, it is not advisable to initiate vanilla short positions on the Index immediately as the risk-reward is not in favour."

Hedged experts went on to add that if someone wants to still play for the downside they should initiate cross-calendar spreads on a bounce in Nifty with the 17000 and 16900 strikes of April-end and April 6, 2023, respectively.

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 6 stocks to buy today.

1] ONGC: Buy at CMP, target 160 to 162, stop loss 150

2] McDowell: Buy at CMP, target 775 to 780, stop loss 740

3] Federal Bank: Buy at CMP, target 136, stop loss 122

4] Tata Steel: Buy at CMP, target 115, stop loss 102

5] Colgate-Palmolive: Buy at 1505, target 1540, stop loss 1480

6] Havells India: Buy at 1205, target 1240, stop loss 1180.

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.