24 Aug , 2022 By : Kanchan Joshi
After witnessing heavy sell-off on Friday and Monday, Indian stock market finished on a positive note on Tuesday. Nifty 50 index ended 86 points higher at 17,577 whereas BSE Sensex shot up 257 points and closed at 59,031 mark. Nifty Bank index ended 399 points north at 38,697 levels. Among sectors, metals, consumer durables and auto indices rose the most while IT index led the losers. Mid-cap and small-cap indices outperformed the Nifty 50 index rising 0.78 per cent and 1.03 per cent respectively.
According to stock market experts, a long positive candle was formed on the daily chart after opening lower. Technically, this pattern indicates a formation of bullish Piercing Line type candle pattern (not a classical one). Normally such bullish piercing line pattern after a reasonable decline indicate upside reversal of a short term down trend. This also reflect a strength of a pullback rally after a steep weakness. Hence, one may expect upside bounce in the short term.
Day trading guide for stock market today
"The decent pullback rally from the lows of Tuesday could be a cheering factor for bulls to make a come back. Further follow-through upside move from here and a sustainable move above 17,800 levels could open further upside for the short term. Any failure to sustain the highs is likely to bring bears into action again. Immediate support for NSE Nifty is placed at 17,500 levels," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Speaking on Nifty Bank's technical outlook, Rajesh Palviya, VP - Technical & Derivative Research at Axis Securities said, "The chart pattern suggests that if Bank Nifty crosses and sustains above the 38,900 level, it would witness buying, leading the index towards 39,200 to 39,400 levels. However, if the index breaks below the 38,500 level, it would witness selling, which would take the index towards 38,200 to 38,000 mark."
Rajesh Palviya of Axis Securities went on to add that on daily chart, Nifty Bank index has formed a 'bullish candle' and has closed above its previous session's high representing a positive bias ahead. The index is moving in a 'Higher Top and Higher Bottom' formation on the daily chart indicating a short-term 'uptrend.'
Nifty Call Put ratio
Speaking on Nifty Call Put data, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, "Market snaps the losing streak on the third day and ended up making some solid close for the BULLs. NIFTY Option chain for the monthly expiry suggests 17500PE holding overall maximum exposure of more than 1.5 lakh contracts and 17400PE being the most active strike - with over 50 thousand contracts fresh as well. CE writers active at 18000CE - overall more than 2 lakh contracts, with CE OI unwinding seen at immediate strikes." Shilpa Rout of Prabhudas Lilladher said that PCR OI at 17500 strike is nearly 2 and 17600 is just below 1, which if holds and increases, expiry can happen at the higher side again.
Nifty Bank Call Put ratio
"BANK NIFTY FUT Option chain reflects on PE writers being active at 38000PE/38500PE - with more than a lakh contracts each overall, with CE writers adding their positions at 39500/40000 strikes - also overall a lakh contracts each, which hints on the range in between 38000-40000 till the expiry," Shilpa Rout said.
Day trading stocks
Unveiling intraday stocks for today, stock market experts — Mehul Kothari, AVP — Technical Research at Anand Rathi; Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher and Rajesh Palviya of Axis Securities — recommended 6 stocks to buy today.
Mehul Kothari's intraday stocks for today
1] ICICI Bank: Buy around ?865, target ?880, stop loss ?855
2] Balrampur Chini: Buy at ?353, target ?375, stop loss ?344
Vaishali Parekh's stocks to buy today
3] Coal India Limited: Buy at ?222.85, target ?236 to rs 240, stop loss ?214
4] Coromandel International: Buy at ?1046.35, target ?1160, stop loss ?990
Rajesh Palviya's shares to buy today
5] NMDC: Buy at CMP, target ?128 to ?135, stop loss ?113
6] Reliance Industries Limited or RIL: Buy at CMP, target ?2750 to ?2800, stop loss ?2580.