Day trading guide for stock market today: Six stocks to buy or sell on Tuesday — 19th December

Day trading guide for today: After logging gains for seventh week in a row, Indian stock market ended lower on Monday. Nifty 50 index finished 38 points down at 21,418 levels, BSE Sensex corrected 168 points and closed at 71,315 mark while Bank Nifty corrected 275 points and finished at 47,867 levels. In broad market, small-cap index gained 0.48 per cent while mid-cap index added 0.28 per cent.

“Domestic equities traded lackluster today as profit booking was seen after a sharp rally over last three sessions. Global markets were also trading cautiously ahead of BoJ’s meeting on Tuesday, where the central bank may announce the plan to end its ultra-loose monetary policy. Nifty ended the session with loss of 38 points at 21419 levels. The broader market however ended in green with Midcap100/SMallcap100 up 0.2%/0.6%. Sector wise it was a mixed bag with Pharma, Auto, Metals, Infra being marginal gainers. Banking and IT stocks took a breather as the sentiment was dampened after several Fed officials hinted that the U.S. Federal Reserve might not cut rates next year. Niche sectors like sugar, shipping and defense stocks were in focus today. Sugar stocks bounced back after the government allowed sugar mills to use both sugarcane juice and B-heavy molasses to produce ethanol while strong domestic order lifted defense stocks,” said Siddhartha Khemka, Head – Retail Research at Motilal Oswal.

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On Nifty 50 today, Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities said, “We believe that the markets have taken a breather after the sharp rise seen last week. So any corrections are likely to be short lived and can be utilized to buy into quality stocks. Immediate resistance for Nifty today is now placed at 21,483 levels.”

On outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, “The Bank Nifty index encountered resistance around the 48,000 level, resulting in an inability to sustain at those higher levels, leading to some selling pressure. The immediate support for the Bank Nifty today is positioned at 47,800. A breach below this level could intensify the selling pressure, potentially pushing the index towards the 47,400 to 47,000 marks.”

Stock market today

On outlook for stock market today, Sidharth Kehmka of Motilal Oswal said, “Overall we remain bullish on the market given the robust domestic economic data, healthy corporate earnings, and strong FII flows. However, given the recent strong rally, bouts of volatility can’t be ruled out. Apart from BoJ policy meet, European CPI data and China’s trade balance would be important events to track on Tuesday.”

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Unveiling intraday trading tips for stock market today, Rajesh Bhosale, Technical Analyst at Angel One said, “This phase typically marks the time when the Santa rally in midcap and small-cap stocks commences during the year. However, given that these segments have already shown strong performance this year, a similar performance might not be anticipated. Looking ahead, trading strategies can persist with a stock-specific approach, but a discerning selection process is crucial.”

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 187481 and 132035 contracts respectively. Major Call open interest addition was seen at 21500 strike which added 94186 contracts in open interest,” adding, “Major total Put open interest was seen at 21300 and 21200 strikes with total open interest of 153720 and 130241 contracts respectively. Major Put open interest addition was seen at 21400 strike which added 32253 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 298810 and 146614 contracts in open interest. Major Call open interest addition was seen at 48000 strike which added 169080 contracts,” adding, “Major total Put open interest was seen at 47800 and 47500 strikes with total open interest of 137665 and 145755 contracts respectively. Major Put open interest addition was seen at 47800 strike which added 33419 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 Virat Jagad, Technical Analyst at Bonanza Portfolio — recommended six stock to buy today.

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Sumeet Bagadia’s intraday stocks for today

1] Marico: Buy at ₹540.45, target ₹565, stop loss ₹528.

Marico share price is currently trading at ₹540.45 levels. The stock has bounced back from the strong support of ₹528 levels which is also close to 50 Day EMA levels. Currently Marico share price is trading above all the important moving averages. On daily charts the stock has formed a strong green candle which indicates bullishness in the stock. Now any dip in the stock around ₹530 levels will be a buying opportunity. A small resistance can be witnessed near ₹547 levels, and once stock crosses the mentioned level Marico share price can now further move towards ₹565 levels and higher. The investors holding from lower levels should keep trailing stop loss.

2] Cipla: Buy at ₹1216.80, target ₹1270, stop loss ₹1190.

Cipla share price is presently trading at ₹1216.80 levels. On the daily chart, the stock has formed a strong bullish candle, signifying a resurgence of strength in its price action. A robust support level is situated at ₹1207 levels, which conveniently aligns with the 50-Day Exponential Moving Average (EMA). This confluence of support factors enhances the stock’s stability and resilience. Furthermore, CIPLA is trading above all the important moving averages, which underscores its overall bullish posture and trend.

3] Sun Pharma: Buy at ₹1250, target ₹1280, stop loss ₹1230.

In the short-term trend, Sun Pharma share has a bullish reversal pattern, technically retrenchment could be possible till ₹1280. So, holding the support level of ₹1230 this stock can bounce toward the ₹1280 level in the short term. Hence, the trader can go long with a stop loss of ₹1230 for the target price of ₹1280.

4] Tata Chemical: Buy at ₹1038, target ₹1085, stop loss ₹1020.

On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of ₹1020. This stock can bounce toward the ₹1085 level in the short term. Hence, a trader can go long with a stop loss of ₹1020 for the target price of ₹1085.

5] Granules India: Buy at ₹402 to ₹402.50, target ₹425, stop loss ₹393.

After a strong run, Granules started consolidating at the upper end where, on the daily chart, we’ve seen a breakout of the pennant formation. This tells us that the bulls are in charge of security. On the indicator front, RSI is trading close to the overbought area, which shows a positive trend in the script. On the directional front DI+ is trading above DI- indicating positive trend whereas ADX trading above DI- indicates strength in the move.

We could see further buying interest in the security till the ₹425 marks, with immediate support of ₹393. Another buying pressure would have been possible if it had managed to hold above the threshold.

6] Zydus Lifesciences: Buy at ₹680 to ₹682, target ₹710, stop loss ₹668.

Zydus Lifesciences Ltd has given a breakout of inverse Head & Shoulder pattern on the daily time frame indicating an uptrend with volume supporting the breakout which shows a positive trend in the script.

Therefore, the long position in Zydus Life Sciences Ltd with support of ₹668 is possible on the basis of that technical configuration for a further hurdle of ₹710. The momentum indicator RSI, which is rising towards the overbought zone, indicates a positive sign. On the directional front, DI+ line is trading above DI- and ADX start moving in the north direction which is showing strength in the security.

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.