Day Trading Guide For August 21: Expert Advice On Stocks

Day Trading Guide for August 21: Expert Advice on Six Stocks to Buy or Sell Today

Stock Market Guide – 21 August

The Indian stock market faced a second consecutive session of losses on August 18, 2023, influenced by weak global cues stemming from concerns over China’s Evergrande Group’s bankruptcy crisis. The NSE Nifty dropped by 55 points to close at 19,310 levels, while the BSE Sensex shed 202 points to reach 64,948. The Bank Nifty index corrected by 40 points, closing at 43,851. Among the major contributors to the Nifty 50 index decline, Infosys took the lead, while Hero MotoCorp experienced the largest percentage drop of 2.1%. The Nifty IT index concluded down by 1.47% at 30,604. Despite some gains in the FMCG and PSU banks sectors, the Nifty extended its decline for the fourth consecutive week.

Stock Market Guide – 21 August: Technical Analysts Offer Day Trading Guidance

Nifty Outlook

Nagaraj Shetti, Technical Research Analyst at HDFC Securities, pointed out that the short-term trend for the Nifty remains weak with range-bound movement. He suggested that there’s a possibility of a downside breakout from the immediate support level of 19,250. If this occurs, the Nifty might slide down to a support zone of 19,100 to 19,000 levels in the near term. On the upside, any bounce is expected to face resistance around the 19,400 level.

Bank Nifty Outlook

Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities, observed that the Bank Nifty had been consolidating within the range of 43,600 to 43,900 for the past three trading sessions. The index had been hovering around the 100-day exponential moving average (DEMA) of 43,851 during this time. He noted that a close above 44,000 could generate buying interest, while strong support at 43,500 is likely to continue. The Bank Nifty closed at 43,851, down 40 points.

Stock Market Guide – 21 August: Key Triggers for the Week Ahead

Siddhartha Khemka, Head of Retail Research at Motilal Oswal, highlighted some factors that could influence the Indian stock market in the coming week. He mentioned the anticipation of pressure on domestic and global markets due to Fed Chair Powell’s speech and upcoming macroeconomic data releases. Additionally, the Reserve Bank of India (RBI) is set to release its meeting minutes on Thursday. Khemka noted that activity might persist in the broader market, accompanied by sectoral rotations. The market would also be keeping a close eye on Reliance Industries as Jio Financial Services is set to list on Indian bourses.

Dividend Stocks and F&O Ban List

Investors are expected to closely monitor the board meeting outcome of Pearl Global Industries Ltd, as the company’s directors are set to consider and approve an interim dividend for the financial year 2023-24. Furthermore, 15 stocks are trading ex-dividend today, including Linc, Competent Auto, Reliance Industries Ltd (RIL), Chambal Fertilisers and Chemicals, among others.

Eleven stocks have been placed on the F&O ban list for the trade date of August 21, 2023. These include Chambal Fertilisers, Delta Corp, GNFC, Granules India, Hindustan Copper, Indiabulls Housing Finance, India Cement, Manappuram Finance, Punjab National Bank (PNB), SAIL, and ZEEL.