Wednesday’s Daily Trading Guide: 6 Stocks to Buy or Sell Today – September 21

According to stock market experts, strong global signals and steady foreign flows are helping Indian markets outperform their emerging and Asian market peers. They said a small positive candle formed on the daily chart with a rising open and a long upper shadow. Technically, there is strong overhead resistance around the 17,900-18,000 levels in this signal. The chart pattern could also point to a weak rebound to the upside over the past two sessions from recent low highs. They added that after an upper low formed on Monday at 17,429 levels on Monday, the current high of 17,919 signals a possible lower upper formation, which needs to be confirmed with weakness in the following session.

Stock Market Today: Technical Outlook

Speaking on the Nifty 50 Technical Outlook, Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: "The bounce higher in the last two sessions could be a relief rally after strong weakness from the highs. If Nifty fails to break above 17,920 levels in the short-term, we can expect a new cycle of weakness from the highs towards the 17,450 levels. Above said hurdle, the market might encounter the next resistance around 18,100 levels.

"If we look at the short-term charts, the recent Nifty correction has led to a breakout of a 'Rising Wedge' pattern on the daily chart and momentum readings have given a negative crossover of the overbought zone. This has already turned the short-term trend lower and due to the oversold setups on the lower timeframe chart, we have seen a pullback in the last couple of trading sessions, therefore risk continues to remain high and up. "Until we break above the 18100 level, we are not off the hook," said Ruchit Jain, Lead Research at 5paisa.com.

Ruchit Jain of 5paisa.com added: "In our outlook on Monday, we mentioned the likelihood of buying interest in the defensive sector such as Pharma. Volatility expectations ahead, this sector should experience some relative outperformance in the near term. "

Nifty call put option data

"Clever options chain for weekly expiry reflects PE editors adding highest exposure at 17000CE overall, over 1.5 lakh contracts (with highest new additions more than 65,000 contracts also), followed by 17800PE - new additions of more than 50,000 contracts. "a lakh of contracts as well. The PCR OI at 17800 being comfortably above 1, shows signs of strength for the index," said Shilpa Rout - Principal Derivatives Analyst at Prabhudas Lilladher.

Nifty Bank Call Put Options Data

Prabhudas Lilladher's Shilpa Rout added: "The Bank Nifty Future Option channel reflects that PE writers are active at 41,000 strikes - broadly above 65,000 contracts, followed by 41,500 CE - the most recent additions from more than 40,000 contracts. CE drafters active at 42,000/43,000 strikes - nearly one lakh contract each."

Buy or sell stocks for today

On stocks to buy or sell today, the stock market experts - Sumeet Bagadia, executive director at Choice Broking; Mehul Kothari, AVP - Technical Research at Anand Rathi and Ravi Singh, VP and Head of Research at Share India - listed these 6 stocks.

Sumeet Bagadia shares to buy today

1]Dr Reddy's: Shop at CMP, target ₹4325 to ₹4400, stop-loss ₹4100

2]Eicher Motors: Buy from CMP, objective ₹3850, stop-loss ₹3620

Mehul Kothari stocks to buy today

3]IndiGo: Buy on ₹1905 target ₹1970, stop-loss ₹1860

4]Bajaj Auto: Buy on ₹3770 target ₹3870 stop loss ₹3710

Ravi Singh's stock picks for Wednesday

5]Metro Brands: Buy at 875, target ₹920, stop loss ₹855

6]Deepak Nitrite: Buy on ₹2175 target ₹2240, stop loss ₹2150.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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