Day trading guide for today: 6 stocks to buy or sell on Friday — 3rd March

According to stock market experts, a long bear candle was formed on the daily chart, that has engulfed down the upside move of previous session. Technically, this pattern indicates lack of strength in the recent upside bounce and the weakness is likely to continue for the short term.

Day trading guide for Friday

Speaking on outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The underlying trend of Nifty continues to be weak. One may expect it to retest the recent swing low of 17,250 levels in the short term. Further weakness below this support could open the next lower levels of 17,000. Any upside bounce from here could find strong resistance around 17,470 levels.”

Asked about Bank Nifty outlook, Rahul Ghose, Founder & CEO at Hedged said, “Traders are moving into Bank Nifty next week by creating the 40,500 short straddle and 40,000 and 41,000 short strangles, which indicates this to be the broad range for the coming week. But from the monthly expiry perspective, this range will not hold as Bank Nifty has been in a very small range for a long time now.”

Nifty call put option data

On Nifty call put ratio, Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher said, “Nifty weekly expiry option chain reflects maximum PE writers exposure at 17000PE of over 70 thousand OI contracts followed by 17400PE/17300PE – each adding over 60 thousand OI contracts. CE writers fresh additions of over a lakh contracts stands at 18000CE and then at 17400CE. PCR_OI at 17300 is 1.64 which should be an immediate support and at 17400 is 0.5, which is a crucial level to be monitored.”

“The Max pain for Nifty today shifted to the 17,400 mark for the next week’s expiry indicating that this is the price, around which the next week’s expiry is expected to happen. The monthly options open interest data is suggesting a bounce in the index from this level as the 17,500 PE still has high OI and this was followed up today with addition in open interest at the 17,400 PE strike. It is not very common to see In-the-money put options having an increase in OI in a falling market,” Rahul Ghose said.

Rahul Ghose went on to add that traders should look for two levels on the downside, day before Wednesday’s low at 17,250, which when broken makes the trend sideways-to-downward and 16740, which makes the trend completely downward.

Bank Nifty call put option data

“Bank Nifty weekly expiry option chain witnesses PE writers adding their position each with over 50 thousand OI contracts at 40000PE/40500PE while CE writers maximum participation visible at 40500CE of over 70 thousand OI contracts followed by 41000CE with 68 thousand OI contracts respectively,” Rout said.

Day trading stocks to buy today

Sharing intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended 6 stocks to buy today.

Sumeet Bagadia’s stocks to buy today

1] Sun Pharma: Buy at CMP, target ₹980 to ₹990, stop loss ₹951

2] Ambuja Cements: Buy at CMP, target ₹390 to ₹400, stop loss ₹355

Anuj Gupta’s day trading stocks for Friday

3] Coal India: Buy at CMP, target ₹131, stop loss ₹117

4] Voltas: Buy at CMP, target ₹950, stop loss ₹890

Ganesh Dongre’s intraday stock picks for today

5] Tata Power: Buy at ₹205, target ₹212, stop loss ₹196

6] AU Bank: Buy at ₹610, target ₹630, stop loss ₹596.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.