Day trading guide for today: Seven stocks to buy or sell on Thursday — March 28

The 30-share BSE Sensex ended higher by 526.01 points or 0.73 per cent at 72,996.31 level while the Nifty 50 closed at 22,123.65 level, up 118.95 points or 0.54 per cent. Analysts said that the recent upward revision in India’s GDP growth forecast by both Moody’s and S&P Global rating agencies uplifted the sentiments. Inflows amounting to ₹50,000 crore by domestic institutional investors (DIIs) in March added to the positivity.

Also Read: NSE T+0 settlement: SBI, Vedanta, MRF among 25 stocks to have new settlement timeline from March 28

In the broader market, while the Nifty Smallcap 100 outperformed the benchmark indices, rising 0.96 per cent, the Nifty Midcap 100 underperformed, ending 0.06 per cent higher. However, these broader indices have dropped 4.46 per cent and 1.03 per cent, respectively, so far in March, while the Nifty 50 has risen 0.64 per cent.

“Stock-specific actions and positive undercurrents due to a healthy economic growth forecast led the market towards a positive closure. However, due to the holiday-led truncated week, investors are now focusing on US GDP data tomorrow and next week’s RBI policy announcement to gauge market direction,” said Vinod Nair, Head of Research, Geojit Financial Services.

Day trading guide for the stock market today

On the outlook for Nifty today, Ajit Mishra, SVP – Technical Research, Religare Broking Ltd said, “Nifty has finally surpassed the hurdle of short term moving average i.e. 20 DEMA but we need sustainability above 22,200 to extend the rebound. Also, since the volatility is still high across the board, traders should remain focused on stock selection and risk management.” 

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd noted, “Investors are covering their short positions ahead of the F&O expiry on Thursday. Benchmark Nifty could gain strength if it crosses its biggest hurdles at 22,257 mark, while support is placed at 21,771 mark.”

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On the technical front, Rupak De, Senior Technical Analyst, LKP Securities said, “Nifty remained strong following an opening with a gain. During the day, it moved up above 22,100 and closed above it as well. The short-term momentum appears positive, supported by a crossover in the RSI (14) indicator. The trend is likely to remain positive as long as it stays above 22,000. On the higher end, it could potentially move towards 22,300 and beyond in the short term.”

On the outlook for Bank Nifty, Kunal Shah said, “The index closed just below its 20-day moving average (20DMA), positioned at 46,950. A decisive break above this level is anticipated to trigger sharp short-covering moves towards the 48,000 mark. However, the index finds support around the 46,500-46,400 zone, and a breach below this level could lead to increased selling pressure.”

Also Read: Oil prices steady on US crude inventories rise lesser than expected ahead of OPEC meeting; Brent at $86/bbl

Global Cues

US stocks ended higher on Wednesday with the Dow leading gains and the S&P 500 setting record-highs, while investors looked toward the next piece of inflation data and Federal Reserve commentary for signals on the rate path.

Gold prices also extended gains on Wednesday ahead of the US Core Personal Consumption Expenditures Price Index (PCE) data that will throw further light on the US Federal Reserve’s policy path after the central bank kept interest rates unchanged for the fifth straight meeting this month.

Oil prices were broadly stable in the previous session after US crude stockpile rose lesser than expected, while slightly dragged by indications that the Organization of Petroleum Exporting Countries (OPEC) is unlikely to change its output policy at its meeting next week. Crude prices have pared gains since hitting last week to their highest levels since October.

Stocks to watch today

Stock exchanges BSE and NSE released the list of 25 stocks that will be eligible for the shortened T+0 settlement cycle from today (March 28). The 25 scrips that will be available for the T+0 cycle are as follows:

Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation Ltd (BPCL), Birlasoft, Cipla, Coforge, Divi’s Laboratories, Hindalco Industries, Indian Hotels Company Ltd, JSW Steel, LIC Housing Finance, LTIMindtree, Samvardhana Motherson International, MRF, Nestle India, NMDC, Oil and Natural Gas Corporation (ONGC), Petronet LNG, SBI, Tata Communications, Trent, Union Bank of India and Vedanta.

The semi-annual rebalance of Nifty indices is also scheduled for today and a series of stocks will see inflows and outflows as per the rejig. According to Nuvama Alternative and Quantitative Research, HDFC Bank, Shriram Finance, Power Finance Corporation, Jio Financial Services, Adani Power, among others, are expected to see the biggest inflows after the rejig. The stocks that are likely to see outflows as part of the rejig include —UPL, ONGC, ICICI Bank, Coal India, Kotak Mahindra Bank, Reliance Industries, Bharat Electronics, among others.

F&O Ban List

Two stocks – Hindustan Copper and Zee Entertainment Enterprises Ltd have been put under the futures and options (F&O) segment by the National Stock Exchange (NSE). No fresh positions are allowed for any of the F&O contracts in the particular stock when placed under the F&O ban period by the stock exchanges.

Day trading stocks for today

On intraday stocks for today, stock market experts — Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi, Shiju Koothupalakkal – Technical Analyst at Prabhudas Lilladher, and Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio Ltd —recommended seven stocks to buy today.

Ganesh Dongre’s intraday stocks for today:

1. Chambal Fertilizers & Chemicals Ltd: Buy Chambal Fertilizers & Chemicals Ltd at ₹344 with a stop loss of ₹335 at a target price of ₹360.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 360 so, holding the support level of 335 this stock can bounce toward the level 360 in the short term, so the trader can go long with a stop loss of 335 for the target price of 360.

2. State Bank of India (SBI): Buy SBI at ₹735 with a stop loss of ₹720 at a target price of ₹760.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 760 so, holding the support level of 720 this stock can bounce toward the level 760 in the short term, so the trader can go long with a stop loss of 720 for the target price of 760.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 28

Shiju Koothupalakkal intraday stocks for today:

3. Parag Milk Food Ltd: Buy Parag Milk Food at ₹210.95 with a stop loss of ₹202 at a target price of ₹230.

The stock after witnessing a decent correction has taken support near 188 zone and has gradually moved past the important 200 period MA of 198 levels to improve the bias and with much upside potential visible, further rise is anticipated. With the RSI flattened out after the slide hovering near the oversold zone and indicating a trend reversal to signal a buy, has made the chart attractive and we suggest buying the stock for an initial target of 230 keeping the strict stop loss of 202.

4. Clean Science & Technology Ltd: Buy Clean Science & Technology at ₹1,348 with a stop loss of ₹1,310 at a target price of ₹1,470.

The stock has taken support near the 1,280 zone witnessing a triple bottom formation pattern on the daily chart and with a decent pullback visible has improved the bias with much scope for further upward movement possible. The RSI has gained strength from the oversold zone and is on the rise, to signal a buy and we suggest buying the stock for an initial target of 1,470 keeping the stop loss of 1,310 level.

5. NHPC: Buy NHPC at ₹88.85 with a stop loss of ₹86 at a target price of ₹97.

The stock has indicated a positive candle formation on the daily chart maintaining above the significant 50EMA level of 84 to trigger for an upside move in the coming days with bias improved and with the RSI also indicating a trend reversal has signaled a buy. We suggest buying the stock for an initial target of 97 keeping the stop loss of 86 level.

Drumil Vithlani’s intraday stocks for today:

6. Reliance Industries: Buy RIL in the range of ₹2,983-2,987 with a stop loss of ₹2,940 and a target price of ₹3,075.

Reliance Industries is seen to be breaking out of a rising channel pattern on the daily time frame and making a strong bullish candlestick which is why a buy recommendation is initiated for targets up to ₹3,075 One can initiate buy on dip in the range of 2,983-2,987 with stop loss below 2,940 on daily closing basis. The price is trading above the short term EMA (20) indicating uptrend in the security. The RSI is now trading in the northern direction supporting the price action

7. Birlasoft Ltd: Buy Birlasoft in the range of ₹759-761 with a stop loss of ₹747 and a target price of ₹785.

Birlasoft is seen to be breaking out of downward sloping channel on the daily time frame and making a bullish candlestick which is why a buy recommendation is initiated for targets up to Rs.785. One can initiate buy on dip in the range of 759-761 with stop loss above 747 on daily closing basis.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 28 Mar 2024, 06:36 AM IST