How to day trade for today: On Thursday, after a one-day respite bounce on Wednesday, the key benchmark indexes of the Indian stock market fell back into the negative zone. NSE Nifty dropped 129 points to settle at 17,321, while the BSE Sensex decreased 501 points to reach 58,909 levels. The Bank Nifty index fell 308 points to end at 40,390 levels. Volumes on the NSE were above average, aided by bulk transactions in Adani Group equities. Even as the advance-decline ratio decreased to 0.75:1, broad market indices declined less than the Nifty.
Stock market experts say that on the daily chart, a long bearish candle formed and ate up the gains from the previous session.Technically, this pattern shows that the recent upswing was not very strong, and short-term weakness is likely to continue.
Friday trading information
Nagaraj Shetti, a technical research analyst at HDFC Securities, commented on the current forecast for the Nifty index. “The underlying trend of the Nifty index remains sluggish. In the immediate term, one could anticipate a retest of the recent low of 17,250. Further weakness below this support could open the door to the $17,000 area. Any rebound to the upside from here may encounter formidable resistance around 17,470.”
When asked about the Bank Nifty prognosis, Hedged’s founder and chief executive officer, Rahul Ghose, responded as follows: “The creation of the 40,500 short straddle and the 40,000 and 41,000 short strangles by traders indicates that this will be the broad range for Bank Nifty next week.” But from the perspective of monthly expiration, this range will not remain, as Bank Nifty has been in a fairly narrow range for quite some time.
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Exceptional call-put option data
On the Nifty call/put ratio, Shilpa Rout, the derivatives lead analyst at Prabhudas Lilladher, commented as follows: “The Nifty weekly expiration option chain reflects maximum PE writer exposure of over 70 thousand OI contracts at 17000PE, followed by 17400PE and 17300PE, each of which adds over 60 thousand OI contracts. CE writers’ recent additions of almost a million contracts total 18000 CE, followed by 17400 CE. At 17300, the PCR OI is 1.64, which should serve as an immediate support level. At 17400, the PCR OI is 0.5, which is a critical level that must be observed.”
“The maximum loss for Nifty has changed to 17,400 today, indicating that this is the price around which the following week’s expiration is anticipated to occur. The monthly options open interest data suggests a rebound in the index from this level, as the 17,500 PE strike still has significant OI, which was followed by an increase in open interest for the 17,400 PE strike today. In a declining market, it is uncommon for in-the-money put options to experience an increase in open interest,” “Rahul Ghose remarked.
Rahul Ghose went on to say that traders should look for two levels on the downside: 17,250, the day before Wednesday’s low, which, if violated, would make the trend sideways-to-downward, and 16740, which would make the trend downward.
Bank Nifty put call option information
“PE authors increase their position by over 50,000 OI contracts at 40000PE and 40500PE, while CE writers’ participation peaks at 40500CE with over 70,000 OI contracts, followed by 41000CE with 68 thousand OI contracts,” Rout explained.
Buying day trading stocks today
Sumeet Bagadia, who is the Executive Director at Choice Broking, Anuj Gupta, who is the Vice President of Research at IIFL Securities, and Ganesh Dongre, who is the Senior Manager of Technical Research at Anand Rathi, shared their intraday stock picks for today and told people to buy six stocks.
Sumeet Bagadia’s recommended stocks to purchase today
1. Sun Pharma: Buy at CMP, 980 to 990 goal, 951 stop loss
2. Ambuja Cements: Buy at the CMP with a target range of 390 to 400 and a stop loss of 355
Friday’s day trading stocks for Anuj Gupta
3. Coal India: Buy at the CMP with a target of 131 and a stop loss of 117.
4. Voltas: Buy at the CMP with a goal of 950 and a stop loss of 890.
Today’s intraday stock picks from Ganesh Dongre
5. Tata Power: Buy at 205 with a target price of 212 and a stop loss of 196
6. AU Bank: Buy at 610 with a target of 630 and a stop loss of 596.