Following dip in dollar index and crude oil prices, Indian stocks extended its rally on second straight session on Thursday. The BSE Sensex shot up 427 points and closed at 54,178 mark while the Nifty 50 index surged 143 points and closed at 16,133 levels. Nifty Bank rallied 596 points and finished at 34,920 mark on Thursday. Put Call Ratio stood at 1.04 and volatility index India VIX ended at 19.20, down by 5 per cent.

According to stock market experts, global equity markets were up as softer oil prices and a weaker dollar signaled fears about inflation and the pace of monetary tightening are fading. They said that a small positive candle was formed with a long lower shadow. Technically, this pattern indicates a continuation of upside move in near term.

Day trading guide for stock market today

"A small positive candle was formed with a long lower shadow. Technically, this pattern indicates a continuation of up move post upside breakout of the crucial overhead resistance at 15900 levels. After the upside breakout of the hurdle at 15900 levels recently, the market is now advancing towards another hurdle of the previous opening downside gap of 13th June at 16175 levels. Hence a sustainable move above 16200 levels could open further sharp upside move ahead. Immediate support for Nifty 50 index is placed at 16000 levels," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Predicting strong upside in Nifty today, Chinmay Barve, Head — Technical and Derivatives Research at Profitmart Securities said, "Nifty 50 index has managed to sustain above its 5 days exponential moving average which clearly highlights its strong undertone."

Expecting Nifty Bank index to outperform other indices, Ruchit Jain, Lead Research at 5paisa.com said, "The Bank Nifty index is continuing its outperformance which is likely to continue given the participation from the large cap space. Amongst the other sectoral indices, the Nifty Metal index has given a closing above its 20-day EMA and hence some positive action could be witnessed in this sector."

Day trading stocks

On intraday stocks for today, share market experts — Sumeet Bagadia, Executive Director at Choice Broking; Mehul Kothari, AVP — Technical Research at Anand Rathi; Rohit Singre, AVP — Technical Research at Bonanza Portfolio and Avinash Gorakshkar, Head of Research at Profitmart Securities — recommended 6 stocks to buy today.

Sumeet Bagadia's intraday stocks for today

1] NMDC: Buy at CMP, target Rs120, stop loss Rs105

2] UPL: Buy at CMP, target Rs700 to Rs710, stop loss Rs660

Mehul Kothari's stocks to buy today

3] SBI Life: Buy around Rs1125, target Rs1170, stop loss Rs1105

4] Larsen & Toubro: Buy around Rs1612, target Rs1655, stop loss Rs1585

Rohit Singre's pick of the day

5] Mahindra CIE Automotive: Momentum buy at CMP, target Rs255, stop loss Rs232

Avinash Gorakshkar's stock of the day

6] Tata Motors: Buy at CMP, target Rs465, stop loss Rs415.