Day trading guide for today: Five buy or sell stocks for Wednesday —August 23

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Day trading guide for today: Domestic equity benchmarks Sensex and Nifty ended flat during Tuesday's session amid persistent concerns over US interest rates and China's economic health, although the mid-cap index rallied to a fresh record on brighter domestic prospects. The gains in shares of select heavyweights such as ITC, Larsen & Toubro and Axis Bank were offset by losses in those of HDFC Bank, ICICI Bank and TCS. Sensex closed 4 points higher at 65,220 while the Nifty closed the day at 19,396, up 3 points.

However, mid and smallcaps clocked strong gains. The BSE Midcap index ended 0.94 per cent higher while the Smallcap index ended with a gain of 0.89 per cent. They have jumped roughly 22 per cent so far this year, while the blue-chips have gained about 7 per cent.

While ITC, HDFC Life Insurance, NTPC, Adani Enterprises emerged as the top gainers on Nifty50, while Jio Financial Services, Bajaj Finserv, Cipla were among the top drags on August 22. Foreign institutional investors (FIIs) continue their selling streak on D-Street and offloaded ₹495 crore, while the domestic institutional investors (DIIs) were net buyers again and invested ₹533.75 crore during the session. According to analysts, the selling spree by FIIs is primarily due to higher US bond yields, a stronger US dollar against its peers.

Also, potential interest rate hikes by the US Federal Reserve is also pushing FIIs to pull out funds from the domestic market. On the outlook for Nifty, Ajit Mishra, SVP - Technical Research, Religare Broking observes that the recent rebound as a counter move within the corrective trend as Nifty has multiple hurdles to cross to change the tone. ‘’A mixed trend across sectors is offering opportunities on both sides.