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Thursday Tactics: A Practical Guide to Day Trading – Top Six Stocks to Watch on January 18th

Thursday Tactics: A Practical Guide to Day Trading – Top Six Stocks to Watch on January 18th

Written by Sanjay Kumar

In the wake of disappointing Chinese economic data and escalating geopolitical tensions in the Middle East, the Indian stock market witnessed a second consecutive day of decline. The Nifty 50 index experienced its most substantial intraday fall since June 13, 2022, plummeting 460 points to close at 21,572.

The BSE Sensex followed suit, dropping 1,628 points to conclude at 71,500. The Bank Nifty index recorded a steep nosedive of 2,060 points, finishing at 46,064. Despite broader market indices falling less dramatically than the Nifty, the advance-decline ratio fell to 0.36:1.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal, commented, “Domestic equities plunged 2% amid a weak global environment and a selloff in HDFC Bank. Nifty saw a sharp decline as selling intensified during the day and closed with a loss of 460 points (-2.1%) at 21,572 levels.”

Market Outlook for Nifty 50 and Bank Nifty

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities:

“The short-term trend of the Nifty 50 index seems to have reversed down sharply. There is a higher possibility of Nifty sliding further down to the next lower support of 21,000 levels in the near term. Immediate resistance for sell on the rise is around 21,750 to 21,850 levels.”

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas:

“Bank Nifty started to form higher tops and higher bottoms on the daily charts, indicating a trend reversal from down to up. We expect the positive momentum to continue till 48,000 on an immediate basis and above that it can extend till 48,500.”

Vaishali Parekh, Vice President — Technical Research at PrabhudasLilladher:

“After heavy selling on Wednesday, overall sentiment on Dalal Street has turned weak as the Nifty 50 index has broken down below the 21,630 zone of the 20 DMA level.”

F&O Ban List and FII DII Data

Thirteen stocks have been placed under the future & option (F&O) ban list for the trade date 18th January 2024, including Aditya Birla Fashion and Retail, Ashok Leyland, Bandhan Bank, and others.

In the cash segment, FIIs sold Indian shares worth ₹10,578.13 crore, while DIIs bought shares worth ₹4,006.44 crore. In the F&O index future segment, both FIIs and DIIs remained net sellers, with FIIs selling shares worth ₹5,048.40 crore and DIIs selling shares worth ₹56,898.07 crore.

Day Trading Stocks Recommendations

Intraday Stocks Recommended by Experts:

  1. Sumeet Bagadia (Coice Broking): Buy IOC at ₹144.40, target ₹148, stop loss ₹142.80.
  2. Ganesh Dongre (Anand Rathi): Buy Power Grid at ₹240, target ₹248, stop loss ₹235.
  3. Kunal Kamble (Bonanza Portfolio): Buy Cochin Shipyard at ₹849.10 to ₹850.10, target ₹970, stop loss ₹787.

Additional Recommendations:

  1. LT Finance: Buy at ₹169.70, target ₹180, stop loss ₹164.
  2. BEL: Buy at ₹187, target ₹195, stop loss ₹180.
  3. SDBL: Buy at ₹297.45 to ₹298, target ₹317, stop loss ₹386.

Nifty and Bank Nifty Call Put Option Data

Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities, provided insights into Nifty Call Put Option data, indicating major total Call open interest at 21700 and 21800 strikes. For Bank Nifty, the major total Call open interest was seen at 46500 and 47000 strikes. Barve also highlighted significant Put open interest at 21500 and 21300 strikes for Nifty and at 46000 and 45500 strikes for Bank Nifty.

Disclaimer: The stock market is subject to rapid fluctuations, and investors are advised to conduct thorough research and seek professional advice before making investment decisions.

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