Day trading guide for today: Six stocks to buy or sell on Monday — July 24
Day trading guide for today: Weakness in Reliance shares and major IT stocks like Tata Consultancy Services (TCS), Infosys, etc., key benchmark indices of the Indian stock market finished lower on Friday last week. Nifty index ended 234 points lower at 19,745 levels, BSE Sensex finished 887 points southward at 66,684 mark whereas Bank Nifty corrected 111 points and closed at 46,075 levels.
Broad market indices did better than the Nifty and Small-cap index ended 0.13 per cent in the positive even as the advance-decline ratio came in lower at 0.82:1. On outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "Nifty formed a bull candle with long upper shadow on the weekly timeframe chart, which signal presence of stiff resistance at 20,000 mark.
The immediate support of 10 day EMA is at 19,650 levels and important 20 day EMA support is at 19,425 levels. The said 20 day EMA has been offering supports for the market since past three months.
Hence, there is a possibility of an upside bounce in the market on further weakness from here. On the way up, the area of 19,850 to 19,900 levels could act as a stiff resistance." On why Indian stock market corrected on Friday, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "The key catalyst behind Nifty’s biggest single-day decline in the last four months was the fall in IT stocks, including giants like Infosys, TCS, HCL Tech, Wipro, and TECHM, as took cues from the drop seen in the tech-heavy Nasdaq." Sugandha went on to add that market's mood was further dampened by Infosys slashing its FY24 guidance, which sent its share price plummeting by more than 8 per cent.
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