Day trading guide for today: Six stocks to buy or sell on Friday — August 11
Day trading guide for today: After declaration of hawkish sounding RBI Monetary Policy Committee (MPC), Indian stock market witnessed sharp correction and finished lower on Thursday. Nifty index ended 89 points lower at 19,543 levels, BSE Sensex nosedived 307 points and closed at 65,688 mark whereas Bank Nifty index finished 338 points lower at 44,541 levels.
In broad market, small-cap index went off 0.15 per cent while mid-cap index nudged 0.01 per cent lower in the previous session. On outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "Negative chart pattern like lower tops and bottoms is intact as per daily chart.
Though, Nifty seems to have formed a new lower top at 19,645 levels on Wednesday, there is no indication of any sharp weakness from the lower highs. Hence, a decisive move above 19650-19700 levels is expected to bring sharp upside move for the market ahead and further weakness from here could find support around 19450-19400 levels for the short term." On why Bank Nifty index came under sell off pressure after RBI MPC meeting outcome declaration, Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Bank Nifty came under intense selling pressure after the RBI introduced Incremental Cash Reserve Ratio(ICRR) of 10% on a temporary basis to drain excess liquidity from the banking system, which will leave the banks with lesser funds to lend.
Bank Nifty closed below the 50-Day Exponential Moving Average (DEMA) of 44,673 Thursday. The downside support for Bank Nifty is placed at 44,300.
A break below 44,300 can take Bank Nifty until 43,500 levels. For the uptrend to resume, Bank Nifty needs to give a strong close above 45,100 levels." On triggers that may
. Read more on livemint.com
