Trade Setup | Things To Know Before Market Opening - 14 Sep 2023 Thursday

Day trading guide for today: Despite weak global cues, Dalal Street ended higher on Wednesday. NSE Nifty finished above 20,000 levels for the first time ever, logging intraday gain of 76 points. Nifty closed at 20,070 levels whereas BSE Sensex surged 245 points and ended at 67,466 mark. Bank Nifty finished 398 points higher at 45,909 levels. In broad market, small-cap index outperformed Nifty and Sensex and logged 0.85 per cent intraday gain on Wednesday whereas mid-cap index added 0.19 per cent.

"Domestic equities cheered the robust macro data (strong IIP growth and lower inflation) which helped Nifty close above the 20k mark for the first time. Nifty opened flat in line with weak global markets, but soon witnessed sharp recovery and ended the day with gains of 77 points (+0.4%) at 20,070. Broader market recovered today post yesterday’s profit booking with Midcap100/Smallcap100 up +0.2%/1.0% respectively. Except Auto and IT, all sectors ended in green with PSU Banks rallying more than 4%. Oil & gas index surged 1% as crude prices climbed to $92/barrel – a 10-month high. Overall the sentiments got boosted post the release of domestic retail inflation which fell to 2-month low of 6.8% while July IIP growth surged to 5-month high," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal.

On outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "A reasonable positive candle was formed on the daily chart, that placed beside the negative candle of Tuesday. Technically this market action indicates that bulls are still not out of the game. Though, selling pressure is emerging from near 20,100 levels, there is no confirmation of any top reversal pattern forming at the new highs. But, a decisive upmove above 20100-20150 levels is expected to bring more upside towards 20,350 to 20,450 levels in the near term. Immediate support for Nifty today is placed at 19,950 levels."

On outlook for Bank Nifty today, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, "Bank Nifty witnessed a strong move closing near the 46,000 mark on Wednesday with frontline Private Banks and PSU Banking stocks beginning to improve their trend with indicators turning positive and much upside potential visible from current levels. The index would have the next major target of 48,000 once the 46,300 to 46,400 zone is decisively breached."

Among dividend stocks in September 2023, 27 stocks are going to trade ex-dividend today. Those 27 dividend paying stocks include Vadilal Industries, Radico Khaitan, J Kumar Infra, Akar Auto Industries, Sakti Finance, BLS International, etc.

Nine stocks have been put in F&O ban list during Thursday session and those nine stocks are Steel Authority of India (SAIL) and National Aluminium Company (NALCO).

On intraday trading strategy, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi and Kunal Kamble, Sr. Technical Analyst at Bonanza Portfolio — recommended six stocks to buy or sell today.

1] Asian Paints: Buy at ₹3277.75, target ₹3410, stop loss ₹3195.

Asian Paints share is currently trading at ₹3277.75 levels. The stock has corrected from the resistance of ₹3305 levels but has shown a sharp bounce from the initial support of ₹3200. The stock has also formed a bullish candle on daily charts. Once stock crosses its resistance of ₹3305 which is also the above mentioned resistance, the stock shall move towards the further resistance of ₹3410 levels. The RSI indicator is also comfortably trading at 53 levels which show the strength for the stock to move upwards. Asian Paints share price is currently trading above all the important moving averages.

2] Biocon: Buy at ₹270.80, target ₹280, stop loss ₹265.

Biocon stock has rebounded from a solid consolidation phase and forming Higher High and Higher Low formation. The stock is currently trading above both the 20-day and 50-day moving averages, indicating strength. Moreover, it is trading above the middle Bollinger band, and there are positive crossovers in both the RSI and MACD, suggesting a continued bullish trend in the near future.

3] Balkrishna Industries: Buy at ₹2405, target ₹2500, stop loss ₹2360.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till ₹2500. So, holding the support level of ₹2360 this stock can bounce toward the ₹2500 level in the short term. Hence, the trader can go long with a stop loss of ₹2360 for the target price of ₹2500.

4] Apollo Hospitals: Buy at ₹5005, target ₹5150, stop loss ₹4945.

On the short-term chart, the stock has shown a bullish reversal pattern. So, holding the support level of ₹4945. This stock can bounce toward the ₹5150 level in the short term. Hence, the trader can go long with a stop loss of ₹4945 for the target price of ₹5150.

5] Tata Consumer: Buy at ₹890, target ₹920, stop loss ₹872.

Tata Consumer share has given a breakout of the rectangle pattern on the upside indicating a positive trend, with strong bullish candle followed by strong volume which is why a buy recommendion is initiated for targets upto ₹920. One can initiate buy on dip in the range of ₹885 to ₹890 with stoploss below ₹872 on daily closing basis.

6] Bharti Airtel: Buy at ₹914, target ₹935, stop loss ₹903.

Bharti Airtel share has given a breakout of all time highs with Bullish candlestick and at the same time, Technical indicator ichimoku cloud suggests a positive trend. Based on the above Technical studies we can come out with a view that the price may move towards higher levels over the short period which shows bullish strength. One can initiate a buy trade in between the range of ₹914 to ₹916 with stoploss of ₹903 on daily closing basis.

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.