Trade Setup For Friday: Key Factors To Know Before Opening Bell: Day Trading Guide For Today

The Indian markets are expected to see a positive start on Friday due to a robust rally in global markets. In early trade, Asian shares soared with Australian shares outperforming, while Gift Nifty too edged higher. Further, the dollar is at a 6-month high, while US crude futures have crossed $90 per barrel. In the previous session, domestic equities recorded a range-bound performance with heavyweight tech stocks like TCS, Wipro, and Tech Mahindra hitting new 52-week highs. Sugar stocks are also sweeter than ever before for investors.

Sensex ended at 67,519, up by 52.01 points or 0.08%. While Nifty ended at 20,103.10, higher by 33.10 points or 0.16% on Thursday. However, Bank Nifty crossed the 46,000 mark to settle at 46,000.85 up by 91.40 points or 0.2%. Midcap and smallcap indices on NSE advanced by over 1% each.

Day Trading Guide For Today:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects a support level in the range of 20,000/19,950 for Nifty 50 on Friday, however, resistance is factored around 20,300/20,350. While she sees Bank Nifty to have a support level of 45,800/45,750 with resistance around 46,500/46,550,

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "The rotational buying across sectors is helping the index to inch gradually higher amid mixed global cues. We are eyeing 20,300 in the Nifty and expect the 19800-19950 zone to offer a cushion in case of any dip. Meanwhile, participants should maintain their focus on stock selection and prefer index majors."

Nifty Spot Index:

The buying on dips strategy is seen as the preferred method for Nifty till it drops below 19,900 decisively.

Rupak De, Senior Technical analyst at LKP Securities in his technical view said, "The "buy on dips" strategy is expected to be the preferred approach until Nifty falls below 19,900 decisively. On the upside, call writers at 20,100 are likely to defend the index against further upward movement. A sustained trade above 20,100 could potentially trigger a significant rally in the short term."

Bank Nifty Spot Index:

A similar pattern of 'buy on dips' is recommended in Bank Nifty.

Rupak De, Senior Technical analyst at LKP Securities said, "The index continues to be a "buy on dips" as long as it stays above 45,500. Nevertheless, a sustained rally could materialize if Bank Nifty decisively breaches the 46,000 mark."

Buy Or Sell Stocks In Intraday:

Vaishali Parekh has recommended buying three stocks in the intraday trade on Friday. These are:

1. REC LTD: The buying range is Rs 246.50 with a stop loss of Rs 242 for a target price of Rs 257.

2. Apollo Hospitals: Buying range at Rs 5084 with a stop loss of Rs 5000 for a target price of Rs 5330.

3. Indraprastha Gas: Buying range is at Rs 471 with a stop loss of Rs 464 for a target price of Rs 495.

Bulk And Block Deals:

On NSE, Small Cap World Fund Inc. sold 18,57,653 equity shares in CMS Info Systems at a price of Rs 355.16 apiece.

Also, Bajaj Healthcare witnessed the selling of 1,50,000 equity shares at Rs 416.06 apiece by Escorp Asset Management.

Other stocks to witness large trade on September 14 are Bajaj Healthcare, TRF, Vikas EcoTech, RattanIndia Power, NBCC (India), NIIT, Panacea Biotec, and India Pesticides among others.

Stocks In News:

NTPC, Schneider Electric Infrastructure, Bharat Forge, Strides Pharma Science, Tata Power, and Alkem Laboratories will be in the news.

Stocks like Gland Pharma, Prince Pipes and Fittings, Finolex Industries, UltraTech Cement, eMudhra, and Fino Payments Bank will have an investor meeting on September 15.

FII and DII data:

On Thursday, foreign institutional investors (FIIs) turned into net buyers, however, the inflows were at a slower pace. On the contrary, the domestic institutional investors (DIIs) halted their buying spree with a marginal selloff.

In Indian stocks, on September 14, FIIs made buying of Rs 294.69 crore, while DIIs sold Rs 50.80 crore.

Stocks banned under F&O on NSE:

The exchange NSE added three stocks namely Balrampur Chini Mills, BHEL, and Zee Entertainment Enterprises to the futures and options (F&O) ban list on Friday. Stocks like Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Indian Energy Exchange, India Cements, Manappuram Finance, National Aluminium Company, REC and SAIL were retained as well in the list.

Securities which are banned in the F&O list are those that have crossed 95% of the market-wide position limit.

Global Trends:

Asian shares zoomed sharply on Friday tracking an upsurge in Wall Street despite the dollar index touching a six-month high over stronger-than-expected US economic data. Also, shares are reacting to a new stimulus plan from China which pushed US crude to over $90 per barrel for the first time in 10 months.

The People's Bank of China has decided to trim its reserve requirement ratio for banks by 25 basis points from Friday onward. This would be the second cut this year, taking the weighted average of RRR for banks to 7.4%.

Apart from this markets are also digesting the European Central Bank's rate hike to an all-time high of 4%, however, the central bank has hinted at the end of the monetary policy tightening.

In early trade, the Australian ASX 200 index surged nearly 2%, the Nikkei 225 surged over 1%, and South Korea's KOSPI index 0.8%.

Meanwhile, US retail sales accelerated to 0.6% in August as against 0.5% in July month owing to a spike in the prices of gasoline, and cut down in budgets. Wall Street rallied overnight with the Dow Jones Industrial Average soaring by 331.58 points or 0.965, and the S&P index climbing by 37.66 points or 0.84%. The tech-heavy index Nasdaq Composite jumped by 112.47 points or 0.81%.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.