Day Trading Guide For September 27, 2023

Day Trading Guide for September 27, 2023: Six Buy or Sell Stocks for Wednesday

Domestic equity benchmarks Sensex and Nifty settled lower in the previous session due to select profit-taking in IT and banking shares in line with weak Asian markets and continuous foreign fund outflows. Nifty 50 opened at 19,682.80 against the previous close of 19,674.55 and touched the intraday high and low of 19,699.35 and 19,637.45, respectively. Nifty 50 finally closed at 19,664.70, down 10 points, or 0.05 percent. The Sensex closed 78 points, or 0.12 per cent, lower at 65,945.47.

The stock market continues to face headwinds as profit-taking and global economic concerns weigh on investor sentiment. While the indices opened marginally higher, the overall tone remains bearish.

BSE Midcap and Smallcap Trends

The BSE Midcap index also ended in the red, falling 0.09 per cent, reflecting the overall cautious sentiment. In contrast, the BSE Smallcap index managed to clock a gain of 0.33 per cent, showing resilience in certain segments of the market.

IT Sector Weakness

IT stocks remained weak, falling 0.5 per cent, on worries over demand uncertainties due to a higher interest rate environment in the US, a key market for Indian IT companies. This continues to be a cause for concern among investors in the sector.

52-Week High Stocks

As many as 169 stocks, including Colgate-Palmolive (India), Coal India, Tata Consumer Products, Trent, and Varun Beverages, hit their fresh 52-week highs in intraday trade on the BSE. This indicates that certain stocks are still attracting interest despite the broader market challenges.

Vedanta in Focus

Shares of Vedanta will be in focus during Wednesday’s trading session after global ratings agency Moody’s downgraded Vedanta Resources’ corporate family rating (CFR) from Caa1 to Caa2 due to elevated risk of debt restructuring over the next few months. Investors will closely watch how this development impacts Vedanta’s performance.

Nifty and Bank Nifty Outlook

On the outlook for Nifty, Ajit Mishra, SVP – Technical Research, Religare Broking, said that a marginal rebound on the global front combined with oversold positions is capping the downside; however, the tone is still bearish. He suggests that a decisive move above 19,750 could prompt some recovery, but investors are advised to remain stock-specific and avoid aggressive positions.

Rupak De, Senior Technical Analyst at LKP Securities, adds that Nifty remained largely range-bound throughout the day as traders appeared uncertain. However, the short-term sentiment remains bearish as Nifty closed below the 21EMA. De suggests that the trend is expected to stay bearish as long as Nifty remains below the 19,750 level, with support established at 19,600.

For Bank Nifty, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, observes that the index has remained in a consolidation phase, with key levels at 45,000 and 45,500. A breakout in either direction is needed to provide a clear market direction. Currently, the index is trading below its 20-day moving average (20DMA), and a decisive move above this level could change the landscape of this consolidation phase.

Global Cues

In the global context, US Treasury yields hit a multi-year high, and the US dollar rose to a 10-month high level amid concerns over interest rates staying high for an extended period and its impact on the global economy. Major central banks worldwide have indicated that interest rates will remain high for a longer duration, raising concerns about the global economic outlook.

Oil Prices

Oil prices settled nearly 1 per cent higher on Tuesday, rebounding from a slump to a two-week low in early trading as expectations of tighter supply outweighed worries that an uncertain economic outlook would crimp demand. Brent crude futures settled 67 cents higher, or 0.7 per cent, at $93.96 a barrel. U.S. West Texas Intermediate crude futures settled 71 cents higher, or 0.8 per cent, at $90.39.

Day Trading Stock Recommendations

For intraday trading, several stock market experts have provided their recommendations:

Sumeet Bagadia (Executive Director at Choice Broking) Intraday Stocks:

BSE: Buy BSE at ₹1,276.9 with a stop loss of ₹1,290 at a target price of ₹1,405.
Varun Beverages: Buy Varun Beverages at ₹967 with a stop loss of ₹942 at a target price of ₹995.

Mitesh Karwa (Research Analyst at Bonanza Portfolio Ltd) Intraday Stocks:

Dixon: Buy Dixon in the range of ₹5,093 – ₹5,098 with a stop loss of ₹4,920 at a target price of ₹5,342.
MapMyIndia (C.E Info Systems): Buy MapMyIndia in the range of ₹1,770- ₹1,773 with a stop loss of ₹1,726 at a target price of ₹1,830.

Religare Broking analysts Intraday Stocks:

Federal Bank: Buy Federal Bank at ₹147.25 with a stop loss of ₹141 at a target price of ₹162.
Tata Consumer Products: Buy Tata Consumer Products at ₹905 with a stop loss of ₹865 at a target price of ₹980.

These stock recommendations provide insights for day traders looking for potential opportunities in the market on September 27, 2023. However, it’s important to conduct thorough research and consider your risk tolerance before making any investment decisions. Market conditions can change rapidly, so always stay updated on the latest news and developments.