Today’s day trading tips: The Sensex and Nifty 50 closed with strong gains in the previous session, following favorable global indications as the US Fed maintained its interest rate pause.
Renewed purchasing in index heavyweights including Reliance, Britannia, TCS, L&T, ICICI Bank, HDFC Bank, and HUL pushed the Nifty up 0.76 percent, or 144 points, to close over 19,100.
The Nifty 50 finished the day up 144 points, or 0.76 percent, at 19,133.25. The Sensex closed at 64,080.90, up 490 points, or 0.77 percent. Mid and small caps gained the most. The BSE Midcap index increased by 1.20 percent, while the Smallcap index increased by 0.97 percent.
Because of their significant concentration of US clientele, IT businesses are substantially more sensitive to US interest rates than other equities and increased by 0.78 percent. The benchmark US 10-year bond yield has fallen to a two-week low, economists say, enhancing the appeal of Indian shares to international investors, who have previously been selling.
Today’s stock market trading guidance
”Upbeat global cues drove a gap-up start in Nifty, followed by a range-bound move to the finish,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
”Participants are finding solace in the rise in global indexes, particularly in the US, but it is too early to declare that we are out of the woods, noting many barriers between the 19200-19400 zone in Nifty. As a result, we maintain our preference for a stock-specific strategy and a greater emphasis on overnight risk management,” Mishra noted.
“Bank Nifty’s daily chart shows an indecisive doji candle formation, signaling instability in the index,” said Kunal Shah, Senior Technical and derivative Analyst at LKP Securities.
The index failed to close above its important 200-day SMA at 43,200, signaling severe resistance at this level. To contemplate a long position in Bank Nifty, wait for a prolonged break over the 200-day simple moving average, which might imply a possible rising trend,” noted Shah.
Cues from Around the World
The Bank of England (BoE) kept interest rates at a 15-year high of 5.25 percent at its most recent meeting on Thursday, marking the second consecutive month of unchanged rates following 14 consecutive raises. The Bank of England also stated that it does not intend to decrease interest rates anytime soon.
According to Labor Department data issued on Thursday, new jobless claims in the United States climbed slightly to 217,000 in the week ending October 28 but showed no evidence of a substantial slowdown.
Oil rose 1% on Thursday, snapping a three-day losing skid, as risk appetite returned to financial markets after the US Fed and the Bank of England held key interest rates unchanged.
Analysts highlighted that crude oil prices were volatile but unable to retain their gains, falling to one-month lows due to a lack of war premium. Crude oil prices fell more than 10% in October, as the Israel-Hamas conflict had no effect on Middle Eastern oil production.
”The dollar index at 106.3, Brent crude at approximately $85, and the 10-year US bond yield around 4.75 percent are all favorable for equity markets in the short run. There is a chance that foreign investors who were consistent sellers in October will switch to buyers, and if that happens, short-covering can propel markets higher despite the lack of clarity surrounding the Israel-Hamas conflict,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Today’s stocks to watch
IndiGo, Titan, Zomato, UCO Bank, MRF, and JSW Infrastructure, among others, will announce their July-September quarter results for fiscal 2023-24 (Q2FY24) today.
Tata Motors, JK Lakshmi Cements, IRFC, and CONCOR will also be in the spotlight during today’s session since these businesses reported their Q2FY24 earnings after the market closed on Thursday.
List of F&O Prohibitions
The National Stock Exchange (NSE) banned GNFC from trading in the futures and options (F&O) sector on Thursday, November 2. When the stock exchanges place a stock under the F&O ban period, no new positions are permitted for any of the F&O contracts in that stock.
Today’s stocks to trade
Stock market gurus Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Sumeet Bagadia, Executive Director at Choice Broking, advised four stocks to purchase today on intraday stocks.
Today’s intraday stocks for Sumeet Bagadia:
1. Bank of Baroda: Buy at 199.9 with a stop loss of 195 and a target price of 215
The current price of Bank of Baroda is 199.9. Following a pullback, the price created fresh higher lows on the daily chart, aided by increased trading activity. Furthermore, the Bank of Baroda’s support remains above significant Exponential Moving Averages (EMAs), particularly the 200-day EMA. These elements support its positive momentum and point to the possibility of more price increases.
The Relative Strength Index (RSI) is now at 47.43 and is rising, indicating more purchasing activity. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has crossed above the oversold level. This combination of technical indications shows that the Bank of Baroda may be able to reach its goal price of 215 in the near future.
To successfully manage risk, set a stop-loss (SL) at 195 to safeguard your investment in the event of an unforeseen market reversal. In conclusion, given the technical analysis and current market conditions, the Bank of Baroda looks to provide an appealing purchasing opportunity for those looking for a 215 price goal, provided conservative risk management measures are used.
2. PFC: Purchase PFC at a price of 257 with a stop loss of 251 and a target price of 267.
PFC’s performance has been particularly strong recently, with a constant upward trend since the beginning of April. The stock’s rising trend has been disrupted by brief bouts of resistance, most notably near the 254 level.
However, a notable event should be noted: PFC has effectively surpassed this resistance barrier, followed by a rise in trade volumes. This milestone might signal a shift in the stock’s behavior.
Furthermore, a closer look at the technical indicators suggests a positive picture. PFC’s present position above its 20-50-200 Day Exponential Moving Averages (EMA) demonstrates the stock’s fundamental strength and endurance. This arrangement indicates a long-term rising tendency in price movement. Furthermore, the Relative Strength Index (RSI) indicator is now measured at around 61 levels, indicating that the stock’s momentum is strong.
Furthermore, the Average Directional Index (ADX) is at 18, confirming the current strength in PFC’s price movement. This indicator, which measures the strength of a trend, indicates a significant amount of positive momentum. We may set goals at 267, with a stop loss at 251.
Today’s intraday stocks for Ganesh Dongre:
3. Tata Power: Purchase Tata Power at 245 with a stop loss at 240 and a target price of 250.
In the short term, the stock has a bullish reversal pattern; technically, retrenchment might be feasible till 250; thus, retaining the support level of 240, this stock can rebound toward the 250 level in the near term; therefore, the trader can go long with a stop loss of 240 and a target price of 250.
4. Bharat Forge: Purchase Bharat Forge at 1,032 with a stop loss at 1,010 and a target price of 1,070.
The stock has formed a bullish reversal pattern on the short-term chart, sustaining the support level of 1010. In the short term, this stock may bounce toward the 1070 level, therefore a trader might go long with a stop loss of 1010 and a target price of 1070.
Support – 18800/18850
Resistance – 19200/19250
Disclaimer: The opinions and suggestions expressed in this article are solely those of the individual experts. These are not the opinions of Axpert Media. Before making any financial decisions, we recommend that investors consult with competent specialists.