Day trading guide for today: Six buy or sell stocks for Wednesday —November 1

Day trading guide for today: Domestic equity indices the Sensex and the Nifty 50 snapped their two-day winning run and resumed their downward march in the previous session, amid mixed global cues.

Tracking mixed global cues, Nifty 50 closed the day at 19,079.60, down 61 points, or 0.32 per cent while the Sensex ended with a loss of 238 points, or 0.37 per cent, at 63,874.93. Mid and smallcaps, however, outperformed as the BSE Midcap index rose 0.29 per cent while the Smallcap index closed 0.02 per cent higher.

With today’s loss, both Sensex and Nifty 50 closed October with a loss of 3 per cent each – logging their worst month in 2023 as elevated US interest rates triggered persistent sales by foreign investors, while a rise in oil prices due to the Israel-Hamas conflict also added to the selling pressure.

Also Read: FPIs emerge net sellers for 2nd month in a row, offload ₹20,356 crore in Indian equities; here’s why

Day trading guide for stock market today

On the outlook for Nifty today, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, ‘’On daily charts, the Nifty has formed a bearish candle indicating further weakness from the current levels.”

‘’We are of the view that the market is likely to consolidate within the range of 18980 to 19220. However, below 18980, traders may prefer to exit out from long positions,” added Chouhan.

On the outlook for Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said that the Bank Nifty index experienced a trading session where it opened and hit its high at the same level, signaling a strong bearish presence in the market.

‘’The confirmed upside resistance for the index is now at 43,500, and until there is a closing breakthrough beyond this level, the overall trend remains negative. On the downside, the index has support at 42,400, and a breach below this level may intensify selling pressure, potentially driving the index towards the 41,500-41,000 range,” added Shah.

Global Cues

The US Federal Reserve policymakers will convene for the latest Federal Open Market Committee (FOMC) meeting which was scheduled for Tuesday, with the interest rate decision anticipated for today. The Fed is widely expected to hold rates at its policy decision after the bell on Wednesday, but Chair Jerome Powell’s commentary will be key.

‘’Recent economic indicators from the US suggest a persistent expansion in the US economy. The Purchasing Managers’ Index (PMI) has consistently remained above the pivotal 50-mark, retail data has surpassed expectations by a notable 0.7 per cent, and the inflation rate continues to register at a robust 3.7 per cent,” said Jayden Ong, Senior Market Analyst, APAC at Vantage.

‘’There is a sustained demand for labour, and both GDP and consumer spending data exhibit positive trends. Consequently, the prevailing market sentiment is that the Federal Reserve will maintain its current high interest rate base point in the short term,” added the analyst.

Stocks to watch today

Some major companies including Ambuja Cements, Britannia, Hero MotoCorp, Indraprastha Gas Limited, Tata Steel, Sun Pharmaceuticals, Relaxo, KEC, India Cements, JK Tyre, among others will declare their July-September quarter results for fiscal 2023-24 (Q2FY24) today.

Larsen & Toubro (L&T), Reliance Power, Tata Consumer Products, Bharti Airtel, will also be in focus during today’s session as these companies declared their Q2FY24 post-market hours on Tuesday.

F&O Ban List

GNFC has been put under the ban for trade on Wednesday, November 1 under the futures and options (F&O) segment by the National Stock Exchange (NSE). No fresh positions are allowed for any of the F&O contracts in the particular stock when placed under the F&O ban period by the stock exchanges.

Day trading stocks for today

On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi, Kunal Kamble, Sr. Technical Analyst, Bonanza Portfolio Ltd, and Sumeet Bagadia, Executive Director at Choice Broking— recommended six stocks to buy today.

Sumeet Bagadia’s intraday stocks for today:

1.Tata Consumer Products: Buy Tata Consumer Products at ₹900.50 with a stop loss of ₹876 at a target price of ₹945

Tata Consumer Products is currently displaying several positive technical indicators in its trading pattern. The Relative Strength Index (RSI) at 57 suggests that the stock is in a balanced state, neither overbought nor oversold, indicating a stable trend.

Furthermore, the stock has crossed above its 20-day Exponential Moving Average (EMA) and closed above it, which is often considered a bullish sign. It’s also trading above other key moving averages, which further reinforces the bullish sentiment.

The Bollinger Bands have recently expanded after a period of squeezing, and the price is trading above the center line of the Bollinger Bands. This suggests increased volatility and potential upward momentum.

There’s a minor resistance level at 910, and if the stock manages to break above it, it could potentially reach 945 levels and beyond which is also an all-time high level for the stock.

With a medium-term target price of 945, we advise purchasing Tata Consumer Products at the CMP of 900.50. If the price closes below 876, our analysis will be regarded as being invalid.

2.Central Depository Services Limited (CDSL): Buy CDSL at ₹1,455 with a stop loss of ₹1,420 at a target price of ₹1,515

CDSL (Central Depository Services Limited) appears to be exhibiting strong bullish momentum. Since April, the stock has demonstrated a consistently positive slope, indicative of an ongoing uptrend. Notably, it encountered periodic resistance around the 1430 mark, but has recently managed to decisively break out above this level, accompanied by robust trading volumes.

Furthermore, the current positioning of the stock above its 20, 50, and 200-day Exponential Moving Averages (EMA) underscores the underlying strength in the security. This confluence of supportive indicators implies a favorable outlook for CDSL in the near term.

The Relative Strength Index (RSI) is presently trading around 67 levels, indicating a notable degree of strength in the stock. Moreover, the Average Directional Index (ADX) stands at 29, further affirming the prevailing strength in the underlying trend. So targets can be set at 1515 with SL at 1420.

Ganesh Dongre’s intraday stocks for today:

3.HDFC Life Insurance: Buy DFC Life Insurance at ₹618 with a stop loss of ₹605 at a target price of ₹632

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 632 so, holding the support level of 605 this stock can bounce toward the 632 level in the short term, so the trader can go long with a stop loss of 605 for the target price of 632

4.Manyavar (Vedant Fashions): Buy Maynavar at ₹1,290 with a stop loss of ₹1,260 at a target price of ₹1,330

On the short-term chart, the stock has shown a bullish reversal pattern, so holding the support level of 1260. this stock can bounce toward the 1330 level in the short term, so the trader can go long with a stop loss of 1260 for the target price of 1330.

Support – 18800/18850

Resistance – 19200/19250

Kunal Kamble’s intraday stocks for today:

5.Stel Holdings: Buying range: ₹230-234; Target ₹283| Stop Loss ₹208

On a Daily time, frame STEL has given a breakout of Pennant Pattern on the upside, indicating a positive trend in the stock. Price trading above both the EMA indicates strength on the upside. Momentum Indicator RSI is havering towards the overbought zone which is showing strong buying interest in the script. Based on above technical setup a long position can be created in STEL for a TP of 283 with a SL of 208

6.Datamatics Global Services: Buying range: ₹675-678; Target ₹740| Stop Loss ₹638

Datamatics Global Services has given a breakout of falling trendline indicating a positive trend. The security has taken support of the Fast (21) and Slow (50) EMA which will act as support, whereas price trading above the EMA’s is indicating upward trend.

Rsi is supporting the price action with trading at higher zone which indicates bullishness. Hence based on above Technical setup a long position can be created in DATAMATICS for an upside target of 740 with a SL of 638.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.