Day trading guide for stock market today: Seven stocks to buy or sell on Wednesday

Nifty opened positive and gained strength throughout the session to close near the day’s high with gains of 158 points (+0.7%) to close at 21929 levels. Broader market too ended in the green with Midcap100/Smallcap100 up 1.2%/0.8%. Baring Banks and FMCG, all sectors ended with gains. Oil & Gas and IT were top gainers up 3%. BLS e-services had a bumper debut, listing at a premium of 129% and closed with total gains of 175% from IPO price. Majority of the European and Asian markets were trading positive on back healthy earnings updates and signs of fresh stimulus in China. This coupled with strong services PMI data supported domestic equities. Overall, we expect the market to continue its positive momentum with sectorial rotations. The key event this week is RBI’s monetary policy which provide direction to the market. Though RBI is expected to maintain status quo, commentary would be eagerly eyed with regards to hint on rate cut,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Day trading guide for stock market today

On the outlook for the Nifty 50 today, Rupak De, Senior Technical Analyst, LKP Securities, said, “The Nifty exhibited a predominantly sideways trend throughout the day, with traders expressing uncertainty regarding the market’s direction. A range-bound movement is expected to persist until a breakout occurs on either side. A decisive upward move beyond 21950 has the potential to propel the Nifty towards 22200. Conversely, a decline below 21850 could instigate a correction towards the 21700 level.”

On the outlook for the Bank Nifty today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, “The Bank Nifty index experienced a subdued trading session one day ahead of the weekly expiry, with an ongoing struggle between bears and bulls. The lack of a clear trend indicates that a breakout is awaited to determine the market direction. The support is positioned at 45500, while the immediate hurdle lies at 46000. A successful break above 46000 is anticipated to propel the index towards 46500 on the upside.”

Analysts believe that there is going to be a period of consolidation post budget week. “ So, February 1 the budget was delivered, the market chart reacted the way it had to react, we believe that post budget there is going to be a period of consolidation. A consolidation could be in the range of just beyond the lower side 21,600 to 21,700 and 21,900 to 22,100 on the higher side,” Gaurang Shah, Senior Vice President, Geojit Financial Services, told Livemint.

Day trading stocks for today

On stocks to buy today, stock market experts — Shiju Koothupalakkal – Technical Analyst at Prabhudas Lilladher, Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi and Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio Ltd — recommended seven stocks to buy or sell today.

Shiju Koothupalakkal’s day trading stocks

1] Zensar Tech: Buy at ₹592, target ₹620, stop loss ₹582

The stock after the short consolidation phase has indicated a decent bullish candle formation on the daily chart taking support from the significant 50EMA level of 564 and improving the bias to anticipate for further rise in the coming session. With the RSI also well placed, we expect initial target of 620 level to be achieved keeping the stop loss of 582.

2] Poonawalla Fincorp: Buy at ₹488.55, target ₹512, stop loss ₹480

The stock has indicated a higher low formation pattern on the daily chart with decent pullback witnessed to improve the bias and also with the RSI indicating a trend reversal to signal a buy, we expect the stock to carry on with the positive move further ahead for initial target of 512 and one can maintain the stop loss of 480.

3] DCX Systems Ltd: Buy at ₹356.95, target ₹372, stop loss ₹350

The stock has maintained a strong support near 338 levels and after a short consolidation period has indicated a positive candle formation pattern on the daily chart to signify strength and can anticipate for further rise. With the RSI also indicating a trend reversal, has signalled a buy and we suggest to buy this stock for an initial upside target of 372 keeping the stop loss of 350.

Ganesh Dongre’s stocks to buy today

4] LTIM: Buy at ₹5470, target ₹5420, stop loss ₹5570

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 5570 so, holding the support level of 5420 this stock can bounce toward the 5570 level in the short term, so the trader can go long with a stop loss of 5420 for the target price of 5570.

5] MRPL: Buy at ₹194, target ₹204, stop loss ₹188

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 204 so, holding the support level of 188 this stock can bounce toward the 204 level in the short term, so the trader can go long with a stop loss of 188 for the target price of 204.

Drumil Vithlani’s buy or sell stock

6] Vascon Engineers: Buy at ₹90-91, target ₹97, stop loss ₹86.50

Vascon engineers is seen to be breaking out of a Flag & pole pattern on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets upto Rs.97. One can initiate buy on dip in the range of 90-91 with stop loss below 86.5 on daily closing basis. The price is trading above the short term EMA (9) indicating uptrend in the security. The RSI is now trading in the northern direction supporting the price action.

7] Petronet LNG: Buy at ₹290-292, target ₹310, stop loss ₹280

Petronet LNG is seen to be breaking out of a resistance zone on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets up to Rs.310. One can initiate buy on dip in the range of 290-292 with stop loss below 280 on daily closing basis.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 Feb 2024, 06:29 AM IST