On account of strong global sentiments, Indian stock market ended in green zone on seventh straight session. Nifty 50 index shot up 119 points and closed at 17,944 mark while BSE Sensex gained 417 points and closed at 60,260 levels. Bank Nifty index ended 222 points higher at 39,461 mark. Among sectors, telecom, consumer durables and IT indices rose the most while auto and capital goods indices fell the most.

According to stock market experts, a small positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a continuation of upside momentum in the market without any reasonable downward correction from the highs. They said that Nifty has moved above the significant trend line resistance at 17,900 levels on Wednesday, which is signaling an upside breakout of the hurdle. But, the formation of reasonable size bull candle during breakout signal absence of strong upside momentum at the highs. Technically, formation of long bull candle that breaking above such resistances are considered as a decisive upside breakouts of the hurdles.

Day trading guide for stock market today

"The upward journey continued in the market and Nifty managed to move above the hurdle of 17,900 levels. However, any lack of strength around 17,900 to 18,000 levels in the next 1-2 sessions could pull Nifty below the resistance area in the short term. On the other side, a decisive move above 18,000 mark is likely to pull Nifty towards the next upside target of 18,600 levels in the near term. Immediate support for NSE Nifty is placed at 17,760 levels," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"The Sensex reclaimed the 60000 mark and Nifty too is approaching the milestone of 18,000 again. The index continues to move higher in the overbought zone with no signs of reversal yet. It is generally seen in strong trending phases that markets continue such extended up moves. The momentum readings are highly overbought, so profit booking shall not be ruled out in the near future. But in such a phase, traders should not pre-empt any reversals and take contra trades but rather continue to trade in the direction of the trend with small position sizes, said Ruchit Jain, Lead Research at 5paisa.com.

On suggestion to day traders, Ruchit Jain of 5paisa.com said, "Trading with a stock specific approach could be a better strategy for the near now as the risk reward in index trades is not favorable now. One should look for sectors that are witnessing buying interest in the initial couple of hours of the session and look to stocks that are taking leadership within the sector."

Speaking on Nifty Call Put data, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, "NIFTY FUT's continues to storm it's way upside towards 18000 almost now, and likely to see more gains in coming days. Option chain for the weekly expiry suggests 17800PE holding overall maximum exposure of 1.7 lakh contracts, however 17900PE adds the most fresh contracts - above 1.2 lakh contracts. CE writers adding aggressive positions at 18000CE - 1.6 lakh contracts overall, and 18200CE with highest fresh contracts of 44 thousand contracts.

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 Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher — recommended 5 stocks to buy today.

Sumeet Bagadia's intraday stocks for today

1] Wipro: Buy at CMP, target Rs455 to Rs465, stop loss Rs435

2] NALCO: Buy at CMP, target Rs88 to Rs92

Anuj Gupta's stocks to buy today

3] State Bank of India or SBI: Buy at CMP, target Rs545, stop loss Rs514

4] Axis Bank: Buy at CMP, target Rs810, stop loss Rs742

Vaishali Parekh's stock of the day

5] Piramal Enterprises: Buy around Rs1974, target Rs2040, stop loss Rs1940.