Following rally in banking stocks, strong global cues and short covering by foreign institutional investors (FIIs), Indian stock market has been rallying for last six sessions. In last 5 sessions, Nifty 50 index shot up over 4 per cent and closed above 16,700 whereas BSE Sensex surged 4.30 per cent and finished above 56,000 mark. Amongst the sectoral indices, the banking space showed a good outperformance led by its heavyweights, which resulted in gains of around 6 per cent in the Bank Nifty. The mid-cap space too witnessed stock specific buying interest.

According to stock market experts, a small positive candle was formed on the daily chart with minor upper and lower shadow. This chart pattern indicate narrow range movement in the market at the highs. The formation of small shadows signal minor confusion among market participants at the highs.

Day trading guide for stock market today

Speaking on SGX Nifty outlook Anuj Gupta, Vice President — Research at IIFL Securities said, “SGX Nifty today is trading 90 points down but overall trend for SGX Nifty today is positive. One should maintain buy on dips strategy and avoid taking any short position. Support for SGX Nifty is placed at 16,450 and 16,200 levels whereas it is facing hurdle at 16,800 and 17,020 levels."

"The short term trend of Nifty continues to be positive and still there is no indication of any reversal formation yet at the highs. But, having placed near the important overhead resistance around 16800 levels, there is a higher probability of downward correction emerging from the highs by next week. Important weekly support for NSE Nifty is placed at 16,450 levels," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"FII’s have covered some of their short positions in the index futures segment in last week and their short covering has led to the positive momentum. In the week ahead, the resistance will be seen around the 17,000 mark where we can see the 61.8 per cent retracement level of the above mentioned corrective phase. Since momentum readings have also approached the overbought zone, it is prudent to look to book profits now on the long positions and take some money off the table," said Ruchit Jain, Lead Research at 5paisa.com.

Day trading stocks

Sharing intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Rajesh Bhosale, Technical Analyst at Angel One and Mehul Kothari, AVP — Technical Research at Anand Rathi — recommended 6 stocks to buy today.

Sumeet Bagadia's intraday stocks for today

1] HDFC Bank: Momentum buy at CMP, target Rs1425 to rs1450, stop loss Rs1360

2] Chambal Fertilisers: Buy at CMP, target Rs330 to Rs340, stop loss Rs310

Rajesh Bhosale's stocks to buy today

3] Rain Industries: Buy around Rs161.60, target Rs175, stop loss Rs154.40

4] United Spirits or MCDOWELL-N: Buy around Rs844, target Rs880, stop loss Rs827

Mehul Kothari's day trading stocks to buy today

5] Bharti Airtel: Buy at Rs679, target Rs700, stop loss Rs665

6] Muthoot Finance: Buy at Rs1039, target Rs1080, stop loss Rs1020.