Day trading guide for Friday: Continuing its longest winning streak in last 20 months, Indian stock market ended in green zone on eighth successive session on Thursday. Nifty 50 index trade range-bound but ended near to its intraday high of 17,956 levels whereas BSE Sensex logged 37 points gain and closed at 60,298 mark. Nifty Bank index finished 194 points higher at 39,656 levels. Mid-cap and small-cap indices rose by 0.34 per cent and 0.42 per cent respectively, outperforming the Nifty even as the advance decline ratio was positive at 1.23:1.
According to stock market experts, after the upside breakout of the crucial overhead resistance of down trend line (down trend line connected from the important lower tops) around 17,900 levels on Wednesday, the Nifty consolidated above the hurdle on Thursday, which has converted as a support as per change in polarity. Though, absence of sharp follow through upside move post upside breakout of the hurdle is missing, but the overall uptrend remains intact.
Day trading guide for stock market today
“The market continued with upside momentum for the 8th consecutive sessions on Thursday and placed at the high. A sustainable move on Nifty above 17,900 to 18,000 levels in the short term is expected to open next upside target of 18,500 to 18,600 levels in the coming week. Crucial supports to be watched at 17760 levels,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Speaking on Nifty Call Put data, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “NIFTY FUT clocks in 18000 mark today and the closing definitely hints on the strength to continue. Option chain for the monthly expiry suggests on a wide range in between 17000-19000 range, as both the strikes on PE and CE side respectively has the maximum exposure. However the immediate range reflects on 17800PE/17900PE holding fresh additions of 45 thousand and 56 thousand contracts respectively, with 18000CE adds overall more than a lakh contracts.”
“BANK NIFTY FUT Option chain reflects on PE writers being active at 38000PE with more than 59 thousand contracts overall, however 39500PE holds maximum fresh positions- more than 40 thousand contracts. CE writers standing tall at 40000CE, with 40200CE add the highest exposure of fresh additions – more than 30 thousand contracts,” said Shilpa Rout.
Day trading stocks
Unveiling intraday stocks for today, stock market experts — Anuj Gupta, Vice President — Research at IIFL Securities; Mehul Kothari, AVP — Technical Research at Anand Rathi and Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher — recommended 6 stocks to buy today.
