Dragged by losses across the board on fears about impact of Covid spread in China on global economy, Indian stock market fell sharply for second successive day on Monday. NSE Nifty lost 218 points and closed at 16,953 whereas BSE Sensex ended 617 points lower at 56,579 levels. But, Nifty Bank index sustained above 36,000 levels after ending 37 points higher at 36,082 levels. Volumes on the NSE was once again on the lower side on a down day suggesting higher FPI selling pressure and local investors stepping back. BSE Small-cap and Mid-cap indices fell 1.86 per cent and 1.88 per cent respectively.

According to stock market experts, a small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern signal a formation of high wave type candle pattern, which indicate high volatility in the market. Normally such formations after a reasonable decline or near the crucial supports more often act as a reversal pattern.

Day trading guide for stock market today

Speaking on intraday trading strategy in regard to Nifty today; Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The short term trend of Nifty continues to be negative. The placement of important support for NSE Nifty is around 16,800 levels and a formation of weekly and daily pattern indicate a probability of an upside bounce from the lows in the next 1-2 sessions. Confirmation of reversal pattern at the lows could signal a quantum of upside bounce in the market."

Echoing with Nagraj Shetti's views; Ruchit Jain, Lead Research, 5paisa.com said, "Nifty has completed its 50 per cent retracement of the previous up move during last week around 16,825 levels, but Bank Nifty was yet to correct up to this retracement mark of its previous upside move. Monday’s gap down completed the 50 per cent retracement of this index too and thereafter we witnessed positive momentum in the same. Now, our markets have ended above the important support of 16,825 and if this support is breached, then it opens up for a continuation of the correction towards 16,400 levels. On the flipside, if the strength in the banks continues and the Nifty does not break this support, then a pullback move towards 17,100 to 17,150 could be seen."

Unveiling day trading strategy for stock market today; Ruchit Jain of 5paisa.com said, "Considering the large move in the global market, our markets could continue to follow the global cues and hence, traders should keep a close watch on the same. The INDIA VIX also rallied today and closed above 21 which is a sign of cautiousness. Traders should avoid aggressive positions in such volatility and focus more on intraday trades rather than taking overnight risks."

Day trading stocks

Sharing intraday stocks for today, stock market experts — Jay Thakkar, Head of Equity Research & VP at Marwadi Financial Services; Anuj Gupta, Vice President — Research at IIFL Securities; Rohit Singre, AVP — Research at Bonanza Portfolio; Mudit Goel, Senior Research Analyst at SMC Global Securities and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended 8 stocks to buy or sell today.

Jay Thakkar's stocks to buy today

1] Maruti Suzuki: Buy around Rs7902, target Rs8132 and Rs8206, stop loss Rs7800

2] Bharat Forge: Sell around Rs703, target Rs680 and Rs665, stop loss Rs724

Anuj Gupta's day trading stocks to buy today

3] State Bank of India or SBIN: Buy at CMP, target Rs540, stop loss Rs464

4] Renuka Sugars: Buy at CMP, target Rs75, stop loss Rs49

Avinash Gorakshkar's stock picks for today

5] Biocon: Buy at CMP, target Rs410, stop loss Rs367

6] TVS Motor Company: Buy at CMP, target Rs690, stop loss Rs630

Mudit Goel's stock of the day

7] Bandhan Bank: Momentum buy at CMP, target Rs342, stop loss Rs325

Rohit Singre's pick of the day

8] IOL Chemicals: Buy at CMP, target Rs515, stop loss Rs461.