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

The Indian market is expected to perform cautiously on Friday amidst mixed global cues. In early trade, Gift Nifty traded lower, while Asian stocks were mixed despite Wall Street gaining overnight. After failing to claim 19,750 levels on several occasions, the benchmark Nifty 50 is expected to edge lower and find support between 19,200 to 19,400. In the previous session, Sensex and Nifty witnessed sharp selling orchestrated by broad-based selling across sectoral indices.

On September 28, the Sensex ended at 65,945.47, down by 78.22 points or 0.12%. While Nifty 50 settled at 19,664.70, lower by 9.85 points or 0.05%. Bank Nifty sheds 141 points to end at 44,624.20, underperforming the 50-scrip benchmark. All sectoral indices were in red with IT stocks underperforming the most. Sharp selling was also seen in auto, consumer durables, PSU banks, and media stocks.

L&T, Bharti Airtel, ONGC, Coal India, and Power Grid were top gainers on Thursday, while Tech Mahindra, Asian Paints, LTIMindtree, M&M, and Wipro were among the top losers. Nifty Midcap 100 tumbled by 1.32% to end at 40,104.05, while the Nifty Smallcap 100 slipped by 0.41% to close at 12,623.75. India's volatility index on this day zoomed nearly 11%.

On the market performance of yesterday, Vinod Nair, Head of Research at Geojit Financial Services said, "The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the 90 USD level, it will be a threat to inflation and boil the operational margins. Globally, US GDP data and the FED chief speech will be watched carefully, which will set the future trend. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode."

Gift Nifty:

Gift Nifty, formerly known as SGX Nifty, traded at 19,631.5, down by 25.5 points or 0.13% at around 7.50 am, on Friday. The benchmark traded in the range of 19,649 and 19,625.5 after opening at 19,657.

Day Trading Guide For Today:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects a support level in the range of 19,400/19,350 for Nifty 50 on Friday, however, resistance is factored around 19,700/19,750. While she sees Bank Nifty as having a support level of 44,000/43,950 with resistance around 44,700/44,750.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "The prevailing weakness in heavyweights across sectors combined with feeble global cues is weighing on the sentiment. After the failed attempt to reclaim 19750, we expect Nifty to inch further lower and test 19400 however the major support is at 19200. Participants should align their trades accordingly and focus more on risk management.

Nifty Spot Index Support Level Today:

Rupak De, Senior Technical analyst at LKP Securities said, the Nifty has experienced a significant correction as it was unable to maintain levels above 19,750. On the daily timeframe, the most recent candle has engulfed the bodies of the preceding few days' candles, which suggests a negative sentiment. The prevailing sentiment continues to favour selling during rallies. Looking ahead, the Nifty may decline towards 19,250, with immediate support situated at 19,450. Resistance is positioned at the higher end at 19,600.

Bank Nifty Index Support Level Today:

Kunal Shah, Senior Technical and derivative analyst at LKP Securities said the Bank Nifty witnessed a resurgence of bearish sentiment as the bears took control, pushing the index lower. Strong resistance has formed at the 20-day moving average (20DMA) located at the 45,000 mark. The immediate support on the downside is situated at 44,200, and a breach below this level could trigger further selling pressure, potentially taking the index down to the 43,800 mark. In this scenario, it's advisable to maintain a "sell on rise" approach as long as the index remains below the 45,000 mark.

Intraday Stocks Picks:

Parekh recommended buying in three stocks during Friday's trade. These are:

1. L&T Finance: Buy at Rs 126.65 with a stop loss of Rs 124 for a target price of Rs 134.

2. SJVN: Buy at Rs 72.40 with a stop loss of Rs 70 for a target price of Rs 78.

3. Crompton Greaves: Buy at Rs 305.75 with a stop loss of Rs 300 for a target price of Rs 324.

Stocks In News:

Stocks like SBI Life Insurance Company, Happiest Minds Technologies, Adani Green Energy, Adani Energy Solutions, Emami, Saregama India, Piramal Pharma, and Tamilnad Mercantile Bank will be in focus.

Also, companies like Punjab Chemicals and Crop Protection, Senco Gold, Insecticides (India), Crompton Greaves Consumer Electricals, CARE Ratings, Nuvoco Vistas Corporation, Anupam Rasayan India, JSW Steel, and Supreme Petrochem will be holding their investor meeting today.

FIIs and DII data:

On September 28th, foreign institutional investors (FIIs) continued to be net sellers of Indian equities, while domestic institutional investors (DIIs) minimised the shocks from FIIs selling by investing.

FIIs pulled out Rs 3,364.22 crore from Indian stocks on Thursday, while DIIs made buying to the tune of Rs 2,711.48 crore.

Global Trends:

Asian stocks traded on a mixed note in the early trade of Friday despite crude oil prices pulling back from their highest level in over a year. Traders' sentiments were split between worries of increased supply from Russia and Saudi Arabia which overpowered on hopes of robust demand in China's Golden Week holiday.

The Japanese Nikkei 225 dipped 0.2%, while South Korea's KOSPI index was marginally. Australian ASX 200 surged 0.3%.

Trading in markets in mainland China is closed on Friday as the country's Golden Week holiday kick starts.

As per a Bloomberg report, Stocks in Asia looked set to post the biggest quarterly decline in a year, while oil's rally faltered and Treasury yields fell. It added, that September is also still shaping up to be the worst month in 2023 for US stock benchmarks and the weakest month for global bonds since February after the Federal Reserve left interest rates at the highest in 22 years at its last meeting.

On the back of easing in crude oil prices, bond yields, Wall Street on Thursday gained. The Dow Jones Industrial Average is up by 116.07 points or 0.35%, while the S&P 500 index climbed by 25.19 points or 0.6%. The tech-heavy Nasdaq Composite Index outperformed in percentage terms with an upside of 108.43 points or 0.83$.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author or 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.