21 Jul , 2022 By : Kanchan Joshi
On account of strong buying in IT, FMCG, metal, MNC, energy and bank stocks, Indian stock market finished in positive zone on fourth straight session on Wednesday. NSE Nifty closed 180 points north at 16,520 whereas BSE Sensex surged 630 points and ended at 55,398 levels. Nifty Bank index finished 252 points higher and closed at 35,972 levels. Broad market indices underperformed as the mid-cap and small-cap indices rose less than 0.5 per cent. Volatility index India VIX lost 2.20 per cent and ended at 16.82 on Wednesday.
According to stock market experts a small body of negative candle was formed on the daily chart with gap up opening, which signal reluctance of market to conquer further highs after the sharp positive opening. This market action could possibly bring further consolidation/minor downward correction for short term before moving up further.
The positive sequence like higher tops and bottoms continued on the daily chart and the current chart pattern signal a probability of a new higher top formation at 16,588 levels. Still there is no confirmation of any higher top reversal as of now. Nifty is currently placed at the edge of the hurdle of 200 day EMA around 16,520 levels.
Day trading guide for stock market today
"The short term trend of Nifty continues to be positive. Though, tiredness in the Nifty at the highs/hurdle is visible, but still there is no firm evidence of any reversal pattern unfolding at the highs. A sustainable move above 16,550 to 16,600 levels could pull Nifty towards another hurdle of 16,800 levels in the short term. Any decline from here could find support around 16,300 to 16,250 levels in the near term," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
On important levels in regard to Nifty Bank index, Chinamy Barve, Head — Technical and Derivative Research at Profitmart Securities said, "The important levels, which will act as crucial support for the Bank Nifty index, are placed at price zone of 35,450 and 35,500 while on the upside; key resistance levels are placed at 36,400 and 36,650 levels."
Day trading stocks
Sharing intraday stocks for today, stock market analysts — Mehul Kothari, AVP — Technical Research at Anand Rathi; Mudit Goel, Senior Research Analyst at SMC Global Securities; Avinash Gorakshkar, Head of Research at Profitmart Securities and Santosh Meena, Head of Research at Swastika Investmart — recommended 8 stocks to buy or sell today.
Mehul Kothari's intraday stocks for today
1] TCS: Buy around Rs3165, target Rs3250, stop loss Rs3100
2] Hikal: Buy around Rs257, target Rs270, stop loss Rs250
Mudit Goel's day trading stocks to buy
3] Firstsource Solutions Ltd or FSL: Buy at CMP, target Rs114, stop loss Rs108
4] Dixon Technologies: Buy at CMP, target Rs3980, stop loss Rs3870
Avinash Gorakshkar's stock picks for Thursday
5] Cipla: Buy at CMP, target Rs1025, stop loss Rs960
6] National Aluminium Company: Buy at CMP, target Rs83, stop loss Rs72.50
Santosh Meena's day trading stocks
7] MCX: Buy at around Rs1406, target Rs1436, stop loss Rs1383
8] Asian Paints: Sell around Rs3006, target Rs2925, stop loss Rs3045.