Following sell-off pressure in global markets, Indian stock market witnessed heavy correction and ended in red territory on Monday. Nifty 50 index corrected 246 points and ended at 17,312, BSE Sensex shed 861 points and closed at 57,972 whereas Nifty Bank index finished 710 points lower at 38,276 levels. Mid-cap and Small-cap indices fell 0.57 per cent and 0.8 per cent respectively. IT, banks, metals and realty indices fell the most while oil & gas and FMCG ended marginally higher.

According to stock market experts, a reasonable positive candle was formed on the daily chart at the lows with gap down opening. Technically, this market action signal a sharp downside momentum. The unfilled opening downside gap of Monday could be considered as a bearish breakaway gap and if this gap remains unfilled for the next few sessions then that could mean market is in middle of a down trend, signaling more weakness ahead.

Day trading guide for stock market today

Speaking on Nifty outlook, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The recent support of 17,340 has been broken on the downside and the next lower target for the Nifty comes around 16,920. The negative sequence of lower tops and bottoms is confirmed and the present weakness could be in line with the formation of new lower bottom (lower bottom reversal needs to be confirmed). Immediate resistance for NSE Nifty is placed at 17,400 levels."

On Nifty call put data, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, "Market finally makes the trip downside and favours the BEARs, however crucial support zones of 17200 was respected. NIFTY Option chain for the weekly expiry reflects on CE writers aggressively adding over a lakh contracts at 17500CE. PE writers standing tall at 17300PE/17000PE, with also more than a lakh contracts each. PE OI unwinding seen at immediate strikes, which hints on the cluttered range going ahead." Prabhudas Lilladher analyst said that PCR OI at 17300 being well above 1, hints on the immediate support zones for the INDEX.

On Bank Nifty call put data, Shilpa Rout of Prabhudas Lilladher said, "Bank Nifty Future Option chain on PE writers being active at 38000PE - with more than a lakh contracts, with CE writers adding their positions at 39000- 40000 strikes - with overall a lakh contracts each as well."

Day trading stocks

On intraday stocks for today, stock market experts — Anuj Gupta, Vice President — Research at IIFL Securities; Rajesh Palviya, VP - Technical and Derivative Research at Axis Securities and Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher — recommended 6 stocks to buy today.

Anuj Gupta's intraday stocks for today

1] RBL Bank: Buy at CMP, target ?133, stop loss ?114

2] Coal India Limited: Buy at CMP, target ?240, stop loss ?208

Rajesh Palviya's stock picks for Tuesday

3] Mazagon Dock: Buy at ?399, target ?415, stop loss ?390

4] Tata Chemicals: Buy at ?1132, target ?1180, stop loss ?1110

Vaishali Parekh's stocks to buy today

5] Sudarshan Chemical: Buy at ?462, target ?530, stop loss ?420

6] Borosil Renewables: Buy at ?565, target ?650, stop loss ?540.