Following weak global cues after the higher than expected inflation number coming out of the US on Friday, Indian stocks fell for second successive day on Monday. Nifty 50 index dipped 427 points and closed at 15,774 whereas BSE Sensex tumbled 1456 points and closed at 52,846 levels. Nifty Bank index crashed 1077 points and closed at 33,405 levels.

According to stock market experts, a long negative candle was formed on the daily chart at the lows with long lower shadow. Technically, this pattern reflects ongoing down trend in the market and an attempt of downside breakout of the support of around 16,700 levels. Formation of long lower shadow signal an emergence of minor buying interest from the lows. They said that Nifty is now placed at the edge of crucial support at 15,650 to 15,700 levels. Previous opening gaps on the weekly chart have been filled soon after the opening in the past. This market action raises hopes for buy on dips opportunity.

Day trading guide for stock market today

Speaking on day trading guide for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The short-term trend of Nifty continues to be negative. Having reached a crucial lower support of 15,700 levels and a formation of unfilled weekly opening downside gap, there is a possibility of an upside bounce from the lows of around 15,500 to 15,400 levels in the next 1-2 sessions."

Advising traders to trade in direction of the trend, Ruchit Jain, Lead Research, 5paisa.com said, "Our markets have been following the global cues and have been acting accordingly as we are witnessing sharp cuts in indices across the globe. The rising US Dollar index along with the bearish positions formed by the FII’s in the index futures segment had turned the trend down again last week post the pullback move up to 16,800. As of now, there’s no respite seen as the data continues to be negative for equity markets and technically also, the oscillator was back into ‘Sell mode’ on Friday last week. Hence, until we see any positive or contra signs, the trend remains down and hence, traders should look to trade in the direction of the trend."

Ruchit Jain of 5paisa.com went on to add that momentum reading on the hourly charts is in oversold but not on the daily chart which is in ‘Sell’ mode. Hence, a pullback move could not be ruled out to relive the oversold set ups of the lower time frame charts. But any such pullback will be just a counter trend move and traders should look for selling opportunities in the same.

Day trading stocks

Sharing intraday stocks for today, stock market experts — Mehul Kothari, AVP — Technical Research at Anand Rathi; Anuj Gupta, Vice President — Research at IIFL Securities and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended 6 stocks to buy or sell today.

Mehul Kothari's intraday stocks for today

1] Reliance Industries Ltd or RIL: Buy around Rs2663, target Rs2720, stop loss Rs2630

2] Mahindra & Mahindra or M&M: Buy around Rs1005, target Rs1045, stop loss Rs980

Anuj Gupta's stock of the day

3] State Bank of India or SBI: Sell at CMP, target Rs420, stop loss Rs485

Avinash Gorakshkar's day trading stocks to buy today

4] Colgate-Palmolive or COLPAL: Buy at CMP, target Rs1585, stop loss Rs1490

5] Bajaj Auto: Buy at CMP, target Rs4000, stop loss Rs3820.