20 Jul , 2022 By : Kanchan Joshi
Key benchmark indices Sensex and Nifty ended in positive zone on third straight session after strong buying in realty, banks, auto and metal stocks on Tuesday. Broad markets also performed well on Tuesday as advance decline ratio came in at 1.61:1 and small-cap and mid-cap indices were up 0.88 per cent and 0.68 per cent respectively. The Volatility Index India or VIX ended slightly higher at 17.20 on Tuesday.
According to stock market experts, a long bull candle was formed on the daily chart, that has placed beside the similar long bull candle of Monday. Technically, this pattern signal a range bound action or consolidation movement at the hurdle. The crucial overhead resistance like 16,250 to 16,300 levels have been surpassed gradually. Technically, such choppy movement/range bound action during upside breakout of important resistance is not a good sign for bulls to sustain the highs.
The larger degree of lower tops and bottoms is intact as per weekly chart. Present upside move could be in line with the formation of new lower top of the sequence. But, still there is no confirmation of any lower top formation at the highs.
SGX Nifty outlook for Wednesday
Expecting positive opening for Indian stock market today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Following strong global cues, SGX Nifty is trading higher in early morning deals. Immediate hurdle placed for SGX Nifty today is at 16,580 whereas it is facing strong hurdle at 16,710 levels on chart pattern. On flipside, in case of profit-booking, SGX Nifty has immediate support at 16,280 while strong support for the index is placed at 16,120 levels."
Day trading guide for stock market today
"The short term uptrend status of Nifty remains intact. But, the lack of strength in the upside momentum could bring bears into action from the higher levels. A decisive move above 16,300 levels is likely pull Nifty towards another hurdle of 16,500 to 16,600 levels in the near term. Immediate support is placed at 16,200 levels," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Expecting strong upside in Indian stock market, Chinmay Barve, Head — Technical and Derivative Research at Profitmart Securities said, "Nifty 50 index has decisively crossed and sustained above its trendline resistance, which clearly indicate the strong undertone of the index."
Advising stock market investors and traders to avoid taking any short position, Ruchit Jain, Lead Research at 5paisa.com said, "Nifty 50 index continues its short term uptrend as the Nifty continues its ‘Higher Top Higher Bottom’ structure on lower time frame charts. The Banking space took the leadership today and it continued its relative outperformance to end above its 200-day EMA. The momentum setups remain in buy mode on the daily chart, but it has reached the overbought zone on the hourly chart. So in case if we see any negative crossover from the overbought zone on the hourly chart, then we could see in between declines in the index to relieve the overbought set ups. Hence, traders should look for stock specific buying opportunities and trade with a positive bias."
Day trading stocks
Sharing intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Avinsh Gorakshkar, Head of Research at Profitmart Securities — recommended 6 stocks to buy today.
Sumeet Bagadia's intraday stocks for today
1] DLF: Buy at CMP, target Rs370 to Rs380, stop loss Rs350
2] Bandhan Bank: Buy at CMP, target Rs300, stop loss Rs275
Anuj Gupta's day trading stocks to buy today
3] Axis Bank: Momentum buy at CMP, target Rs745, stop loss Rs674
4] Statae Bank of India or SBI: Buy at CMP, target Rs540, stop loss Rs474
Avinash Gorakshkar's shares to buy today
5] Bharat Forge: Buy at CMP, target Rs710, stop loss Rs648.