Day trading guide for today: Six buy or sell stocks for Wednesday—December 27
The Nifty 50 closed with a gain of 92 points, or 0.43 per cent, at 21,441.35, while the Sensex ended 230 points, or 0.32 per cent, higher at 71,336.80. Mid and smallcaps outperformed the benchmarks. The BSE Midcap index ended 0.72 per cent higher while the Smallcap index rose 0.48 per cent.
In the three sessions to Tuesday, Nifty gained 291 points or 1.37 per cent while Sensex rose by 1.17 per cent or 830 points. Power, utilities, banking, oil and gas and commodities shares attracted buying while IT and tech shares were down on selling.
Also Read: NFO Alert: SBI Mutual Fund launches SBI Fixed Maturity Plan; all you need to know
Day trading guide for the stock market today
On the outlook for Nifty today, Ajit Mishra, SVP – Technical Research, Religare Broking Ltd said, ‘’We have reached closer to the hurdle of 21,500 in Nifty and need support from the banking index to make a serious attempt for trend resumption else profit taking would resume.”
‘’Amid all, traders should avoid aggressive trades in the index and stay focused on identifying opportunities on stock-specific front. We reiterate our preference for defensive viz. pharma and FMCG for long trades and suggest picking selectively from others,” added Mishra.
Technically, the sentiment remains optimistic as the index stays above critical moving averages. ‘’At 21,500, there could be significant immediate resistance. A decisive breakout beyond this level could potentially propel the index into a substantial rally. Until then, the index is expected to remain within the range of 21,300 and 21,500,” said Rupak De, Senior Technical Analyst at LKP Securities.
On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said that the sentiment has again turned positive as the index moves back above 47,500. ‘’A small green bodied candle within the previous red candle indicates a potential bullish trend ahead. Support is established at 47,500 while resistance is observed at 48,000/48,250 on the higher side,” added Shah.
Nifty Call Put Option data
Speaking on Nifty Call Put Option data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, ‘’Major total Call open interest was seen at 21,500 and 21,600 strikes with total open interest of 1,99,155 and 1,58,508 contracts respectively. Major Call open interest addition was seen at 21600 strike which added 51,444 contracts in open interest.”
‘’Major total Put open interest was seen at 21,400 and 21,300 strikes with total open interest of 1,66,390 and 1,99,841 contracts respectively. Major Put open interest addition was seen at 21,400 and 21,300 strikes which added 90,699 and 91,026 contracts respectively in open interest,” he added.
Bank Nifty Call Put Option data
Speaking on Bank Nifty Call Put Option data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, ‘Major total Call open interest was seen at 48,000 and 48,200 strikes with total open interest of 2,21,942 and 1,08,886 contracts in open interest. Major Call open interest addition was seen at 48,500 and 49,000 strikes which added 44,631 and 60,912 contracts respectively in open interest.”
‘’Major total Put open interest was seen at 47,500 and 47,000 strikes with total open interest of 2,12,980 and 1,95,085 contracts respectively. Major Put open interest addition was seen at 47,500 strike which added 1,18,418 contracts in open interest.”
Global Cues
In Asian markets, Seoul and Tokyo settled with gains while Shanghai ended lower. Markets in Hong Kong were closed. US and European markets were closed on Monday. European markets remained closed on Tuesday for Boxing Day.
Oil jumped over two per cent on in the previous session to the highest in almost a month, supported by Middle East strife and investor optimism that the US Federal Reserve would soon start cutting interest rates, boosting global economic growth and fuel demand.
The rally – in thin trade with some markets closed for public holidays, added to last week’s gains of about three per cent after Houthi attacks on ships disrupted global shipping and trade while the Israel-Hamas conflict shows no sign of easing.
Brent crude futures were up by $1.79, or 2.3 per cent, at $80.86 a barrel and earlier reached $81.23, the highest since December 1. US West Texas Intermediate crude rose by $1.89, or 2.6 per cent, to $75.45, according to news agency Reuters.
Stocks to watch today
Shares of Axis Bank and Zee Learn will be in focus during today’s session after Axis Bank approached the National Company Law Tribunal (NCLT) on Tuesday with a plea seeking insolvency proceeding against Zee Learn.
Additionally, shares of Aditya Birla Capital Ltd will also be in focus as the financial services arm of Aditya Birla Group said on Tuesday that it is infusing ₹850 crore and ₹50 crore in its subsidiaries, Aditya Birla Finance Ltd and Aditya Birla Capital Digital Ltd respectively on a rights basis.
F&O Ban List
A total of five stocks – Hindustan Copper, National Aluminium Company Limited, RBL Bank, Balrampur Chini Mills, and Delta Corp have been put under the ban for trade on Wednesday, December 27, under the futures and options (F&O) segment by the National Stock Exchange (NSE). No fresh positions are allowed for any of the F&O contracts in the particular stock when placed under the F&O ban period by the stock exchanges.
Day trading stocks for today
On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi, Sumeet Bagadia, Executive Director at Choice Broking, and Mitesh Karwa, Research Analyst at Bonanza Portfolio —recommended six stocks to buy today.
Sumeet Bagadia’s intraday stocks for today:
1.Gujarat Mineral Development Corporation Limited (GMDC): Buy GMDC at ₹411.40 with a stop loss of ₹401 at a target price of ₹430.
GMDC is currently positioned at 411.40 levels, demonstrating technical strength and stability. The stock boasts a robust support zone at 401 levels, aligning closely with its 20-Day Exponential Moving Average (EMA). In the daily chart analysis, a minor resistance is noticeable around 420 levels. Upon surpassing this resistance, the stock is poised for an upward trajectory targeting 430 levels and beyond.
The stock’s resilience is evident as it trades above short-term (20-Day), medium-term (50-Day), and long-term (200-Day) EMA levels, affirming its overall strength. The Momentum indicator, Relative Strength Index (RSI), has rebounded from lower levels, currently trading at 54, indicating renewed buying interest.
As the stock charts a path towards higher resistances, investors may find opportunities to capitalize on potential upward movements, with a cautious eye on the mentioned support levels and technical indicators for informed decision-making. Based on the above analysis we recommend buying GMDCLTD in cash at CMP of 411.40 for the target of 430 with a stop loss of 401.
2.Tata Chemicals: Buy Tata Chemicals at ₹1,095 with a stop loss of ₹1,068 at a target price of ₹1,155.
Tata Chemicals daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects a up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.
Key technical indicators, such as the Relative Strength Index (RSI), underscore the stock’s positive momentum. The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages—specifically, the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in Tata Chemicals price action.
Volume analysis further substantiates the credibility of the up move, with a pronounced increase accompanying the positive trend. The comprehensive evaluation of Tata Chemicals daily chart implies the existence of a broader bullish pattern in the stock price.
This, in turn, presents a compelling long trading opportunity for investors seeking to capitalize on the anticipated upward trajectory. Based on the above analysis we recommend buying Tata Chemicals in cash at CMP of 1,095 for the target of 1,155 with a stop loss of 1,068.
Ganesh Dongre’s intraday stocks for today:
3.Exide Industries: Buy Exide Industries at ₹297 with a stoploss of ₹290 at a target price of ₹305
In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 305 so, holding the support level of 290 this stock can bounce toward the 305 level in the short term, so the trader can go long with a stop loss of 290 for the target price of 305.
4.Kotak Mahindra Bank: Buy Kotak Mahindra Bank at ₹1,887 with a stop loss of ₹1,870 at a target price of ₹1,920
On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of 1,870. this stock can bounce toward the 1,920 level in the short term, so the trader can go long with a stop loss of 1,870 for the target price of 1,920.
Mitesh Karwa’s buy or sell stocks for today:
5.Deepak Nitrite: Buying range: Rs. 2,465-2,468; Target Rs. 2,515 | Stop Loss Rs. 2,435
Deepak Nitrite is seen to be breaking out of bullish pattern and closing in green with a bullish candlestick which is why a buy recommendation is initiated for targets upto Rs. 2,515. One can initiate buy on dip in the range of 2,465-2,468 with stoploss below 2,435 on daily closing basis.
6.Laurus Labs: BUY| Buying range: Rs. 433-435; Target Rs. 450 | Stop Loss Rs. 427
Laurus Labs is seen to be breaking out of a downwards sloping parallel channel pattern on the weekly timeframe and making a bullish candlestick after breakout which is buying is recommended for targets upto Rs. 450. One can initiate a buy trade in between the range of 433-435 with stoploss of 427 on daily closing basis.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 27 Dec 2023, 06:04 AM IST
