Day trading can be a lucrative venture, but it requires careful analysis and strategic decision-making. In this day trading guide for today, we will explore six stocks recommended by market experts for Wednesday, September 6. These stocks include JSW Steel, United Breweries, Bikaji Food International, Jain Irrigation Systems, Tech Mahindra, and CreditAccess Grameen. We will also delve into the recent performance of domestic equity markets, global cues affecting trading sentiment, and technical insights from experts to help you make informed trading decisions.
Domestic Equity Market Overview
The Indian domestic equity markets have been on an upward trajectory, with the Sensex and Nifty settling higher for the third consecutive day. The BSE Sensex closed at 65,780.26, up 0.23%, while the Nifty closed at 19,574.90, up 0.24%. This positive momentum in the market is attributed to the robust growth in India’s first-quarter gross domestic product (GDP), which expanded at a remarkable 7.8%, the fastest pace in a year.
Additionally, mid-cap and small-cap stocks have outperformed blue-chip stocks, with the Nifty Midcap 100 index hitting an all-time high and the Nifty Smallcap 100 index witnessing significant gains of over 30% and 27% respectively year-to-date. This outperformance indicates a broader market rally.
Market Expert Insights
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, noted that despite weak global markets, the domestic equities closed positively. He cited the Services PMI data for August, which came in strong at 60.1, as a boost to market sentiments. Khemka anticipates that the market will continue trading in a broader range with a positive bias, given the resilience of the domestic economy.
Technical Analysis and Outlook
Ajit Mishra, SVP – Technical Research at Religare Broking, emphasized caution in stock selection, especially in the midcap and smallcap space. He pointed out that the Nifty is nearing resistance at 19,650 and would require strong participation from the banking sector to surpass it.
Rupak De, Senior Technical Analyst at LKP Securities, highlighted the importance of the 19,440 support level for Nifty. As long as Nifty remains above this level, a “buy on dips” strategy is recommended, with resistance at 19,600 indicating potential upward movement.
For Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, observed a consolidation phase with support at 44,500 and resistance at 44,650. He encouraged traders to consider buying on dips, with a breakout above 44,700 potentially leading to further gains.
Global equities faced some headwinds on Tuesday, primarily due to higher Treasury yields impacting growth stocks. Concerns also arose over the pace of services activity expansion in China, the world’s second-largest economy. Additionally, Brent crude oil traded above $90 per barrel as Saudi Arabia and Russia extended their voluntary production cuts, which could impact oil prices.
Foreign Institutional Investors continued to sell Indian equities, with a net outflow of ₹1,725 crore, despite positive macroeconomic cues. On the other hand, Domestic Institutional Investors infused ₹1,077.86 crore into the market. These flows highlight the divergence in investor sentiment in the current market scenario.
F&O Ban List
Six stocks have been included in the F&O ban list by the stock exchange for Wednesday. These stocks, including BHEL, India Cements, Delta Corp, Hindustan Copper, Balrampur Chini Mills Limited, and Indiabulls Housing Finance, have crossed 95% of the market-wide position limit (MWPL). However, they remain available for trading in the cash market.
Intraday Stock Recommendations
Now, let’s take a closer look at the intraday stock recommendations provided by market experts:
Sumeet Bagadia’s Recommendations:
- JSW Steel: Suggested to buy at ₹815.95 with a stop loss at ₹795 and a target price of ₹850. Technical analysis indicates that JSW Steel has potential for an upward movement.
- United Breweries (UBL): Recommended a buy at ₹1,587 with a stop loss at ₹1,555 and a target price of ₹1,630. UBL shows strong technical support and positive momentum.
Pravesh Gour’s Recommendations:
- Bikaji Foods International: Advised to buy at ₹512 with a stop loss at ₹492 and a target price of ₹544. A breakout with strong volume signals potential upward movement.
- Jain Irrigation Systems: Suggested buying at ₹66.75 with a stop loss at ₹63.50 and a target price of ₹74. A breakout from a flag formation is supported by significant volume.
Rupak De’s Recommendations:
- Tech Mahindra: Recommended a buy at ₹1,257 with a stop loss at ₹1,224 and a target price of ₹1,320. Tech Mahindra has shown a breakout and positive momentum.
- CreditAccess Grameen Ltd: Advised buying at ₹1,464 with a stop loss at ₹1,400 and a target price of ₹1,570. The stock has broken out from consolidation with strong volume.
As you venture into day trading on September 6, keep in mind the recommendations from market experts and the technical analysis provided. It’s essential to stay updated on domestic and global market conditions to make informed trading decisions. Additionally, managing risk through stop-loss orders is crucial in day trading. Always exercise caution and use these insights as a guide to navigate the dynamic world of day trading.