Day trading guide for stock market today: Six stocks to buy or sell on Friday — 22nd December

Day trading guide for today: Indian stock market witnessed a healthy bounce back on Thursday after a sharp selloff seen on Wednesday. Nifty 50 index ggained 104 points and closed at 21,255 levels, BSE Sensex shot up 358 points and ended at 70,865 mark whereas Bank Nifty index finished 394 points higher at 47,840 levels. Broad market indices rose more than the Nifty 50 index even as the advance decline ratio rose sharply to 3.66:1.

“Nifty recovered smartly from lower levels following rebound in global markets and closed with gains of 105 points (+0.5%) at 21255 levels. Broader market outperformed with Nifty Midcap 100 and Smallcap 100 up more than 1.5%. All sectors ended in green with Oil & Gas, PSU Bank and Metals being top gainers. Niche sector like defence was in focus after companies received order from government. Though market saw profit booking on Wednesday, but the underlying sentiments remain positive given robust micro and macro domestic factors,” said Siddhartha Khemka, Head – Retail Research at Motilal Oswal.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 22

Day trading guide for stock market today

On outlook for Nifty 50 today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, “Nifty recently demonstrated resilience, rebounding strongly from a critical support level at 21000, affirming a bullish sentiment. The index closed above its 10-day moving average, signaling positive momentum. Key levels to monitor include 21,000 as immediate support and 21,300 as the initial resistance.”

On oulook for Bank Nifty today, Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, “Bank Nifty made a sensational recovery, rising sharply to close at 47,840, up 395 points. Strong put writing was observed at 47,500 & 48,000 Strike in Bank Nifty. The option activity at 48,000 Strike will provide cues about index’s Intraday direction tomorrow. A close above today’s high of 47,932 is likely to further intensify buying pressure.”

On outlook for stock market today, Ruchit Jain, Lead Research at 5paisa.com said, “The overall market breadth remains strong and indicates a firm market, but still Nifty needs to surpass key levels for a continuation of the momentum. The immediate support for Nifty is placed around 21,000 to 20,950 while resistances are seen around 21,360 followed by 21,500 to 21,600 zone.”

Unveiling intraday trading tips for Friday session, Ruchit Jain said, “Traders are advised to look for stock specific opportunities from a trading perspective and trade with proper risk management.”

FII DII data

FIIs continue to sell in Indian markets while DIIs provided strong buying support for yet another session during Thursday deals. In cash segment, FIIs sold Indian shares worth ₹1,636 crore whereas DII bought Indian shares worth ₹1,464.70 crore on Thursday.

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 21500 and 21600 strikes with total open interest of 132371 and 94311 contracts respectively. Major Call open interest addition was seen at 21500 strike which added 23510 contracts in open interest,” adding, “Major total Put open interest was seen at 21200 and 21000 strikes with total open interest of 79989 and 175498 contracts respectively. Major Put open interest addition was seen at 21000 strike which added 61419 contracts in open interest.”

Bank Nifty Call Put Option data

On Bank Nifty Call Put Option data, Chinmay Barve of Profitmart Securities said, “Major total Call open interest was seen at 48000 and 48500 strikes with total open interest of 185671 and 107357 contracts in open interest. Major Call open interest addition was seen at 48500 and 49000 strikes which added 29931 and 40495 contracts respectively in open interest,” adding, “Major total Put open interest was seen at 47500 strike with total open interest of 128668 contracts. Major Put open interest addition was seen at 47500 strike which added 65798 contracts in open interest.”

Day trading stocks for today

On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi and Mitesh Karwa, Research Analyst at Bonanza Portfolio — recommended six stock to buy today.

Sumeet Bagadia’s intraday stocks for today

1] LT: Buy at ₹3424.15, target ₹3560, stop loss ₹3340.

LT share price is currently trading at ₹3424.15 levels. The stock has a strong support at ₹3340 levels which is also close to its 20 Day EMA levels and the stock has shown a strong bounce from the same support mentioned. LT share price can now progress even further towards new all-time high levels and beyond. The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 66 levels. The stock is also moving above all important moving averages. Once stock crosses the previous all-time high of ₹3530 it can move towards the level of ₹3560 and above.

2] Kotak Mahindra Bank: Buy at ₹1852, target ₹1940, stop loss ₹1805.

Kotak Mahindra Bank share is currently trading at ₹1852, and its price signals a potential breakout of a rounding bottom pattern on the daily chart. The breakout is accompanied by substantial trading volume and is supported by a bullish candlestick pattern, indicating robust upward momentum in the stock.

Moreover, Kotak Mahindra Bank share is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs strengthens the bullish outlook, indicating the potential for sustained upward price movement.

Ganesh Dongre’s stocks to buy today

3] RailTel: Buy at ₹293, target ₹305, stop loss ₹285.

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 ₹285 this stock can bounce toward the ₹305 level in the short term. Hence, the trader can go long with a stop loss of ₹285 for the target price of ₹305.

4] Tata Chemical: Buy at ₹1010, target ₹1045, stop loss ₹980.

On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of ₹980. This stock can bounce toward the ₹1045 level in the short term, so the trader can go long with a stop loss of ₹980 for the target price of ₹1045.

Mitesh Karwa’s buy or sell stocks

5] Cochin Shipyards: Buy at ₹1295 to ₹1300, target ₹1350, stop loss ₹1270.

Cochin Shipyards share price 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 ₹1350. One can initiate buy on dip in the range of ₹1295 to ₹1300 with stoploss below ₹1270 on daily closing basis.

6] Heritage Foods: Buy at ₹265 to ₹266, target ₹280, stop loss ₹256.

Heritage Foods share price is seen to be breaking out of a resistance on the daily timeframe and making a bullish candlestick after breakout which is buying is recommended for targets upto ₹280. One can initiate a buy trade in between the range of ₹265 to ₹266 with stoploss of ₹256 on daily closing basis.

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