Trade Setup For Friday: Major Key Factors To Know Before The Opening Bell; Intraday Stocks To Buy

The Gift Nifty traded higher on Friday, hinting at a positive start for Indian markets in the opening bell. However, Asian cues are under pressure tracking the decline of US stocks due to a strengthening in the US dollar index against a basket of major currencies. Also, treasury yields have plunged. In the previous session, Sensex and Nifty 50 witnessed robust upside driven by capital goods, consumer durables, metals, and industrial stocks.

Gift Nifty, formerly known as SGX Nifty, traded at 19,785.0, slightly up by 17.5 points or 0.09% at 7.25 am, on Friday. The index opened at 19,767.5 and traded in the range of intraday high and low of 19,803.0 to 19,773.0 respectively.

Friday's Trade Guide:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects the Nifty Spot Index to find support around 19,660/19,550 during Thursday's trade, while resistance is seen at 19,900/19,950. Further, the Bank Nifty spot index is likely to find support in the range of 44,500/44,450 and resistance is seen between 45,400/45,450.

In his technical view for Nifty 50, Rupak De, Senior Technical analyst at LKP Securities said, the bulls were able to push Nifty higher following a range-bound trading period in the preceding few days. The sentiment remains positive as long as the index sustains above 19,550. On the higher end, gains may extend to the range of 19,900 to 20,000 in the near term, provided that bullishness in the market continues to increase.

In case of Bank Nifty, Kunal Shah, Senior Technical and derivative analyst at LKP Securities said, the index has recently experienced a fresh breakout on the daily chart. This breakout was accompanied by a notable increase in trading volumes.TA robust support level has formed at 44500, which also coincides with the index's 20-day moving average (20DMA). This level is expected to provide significant support to the index. The index successfully closed above the previous day's high, establishing a bullish undertone for the near term. The Bank Nifty index has the potential to reach upside targets in the range of 45200 to 45500."

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Nifty has finally crossed the hurdle at 19,650 and the alignment of the banking pack has further strengthened the tone. We expect the index to inch towards the new milestone of "20,000" now. Traders should align their positions accordingly and maintain a balanced approach as broader indices look stretched."

Stock News Today:

Stocks in the news are -- Bajaj Finserv, Sterlite Technologies, Campus Activewear, Mazagon Dock Shipbuilders, Landmark Cars, REC Ltd, and JB Chemicals and Pharmaceuticals.

Under the F&O ban list, the exchange NSE added Punjab National Bank for September 8, while stocks like Balrampur Chini Mills, BHEL, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, and SAIL were retained on the list.

Intraday Stock Picks:

Parekh has recommended 3 stocks to buy on Friday:

- Buy REC Ltd at Rs 245.55 with a stop loss of Rs 242 for a target of Rs 257.

- Buy Torrent Power at Rs 720 with a stop loss of Rs 710 for a target of Rs 760.

- Buy MTAR Technologies at Rs 2773.60 with a stop loss of Rs 2735 for a target of Rs 2900.

Market Performance for September 7

On September 7th, Sensex surged by 385.04 points or 0.58%, to end at 66,265.56. After extending their new record highs of 32,396.28 and 38,169.65, the BSE Midcap and Smallcap index ended with a surge of 252.87 points and 152.60 points respectively. Of the total 3,807 stocks traded on BSE, 2,198 stocks were positive, 1,490 stocks declined and 119 stocks were muted. 289 stocks touched new 52-week highs and 16 stocks struck their 52-week lows.

Meanwhile, Nifty 50 jumped by 116 points or 0.59% to settle at 19,727.05 on Thursday. Bank Nifty zoomed 469.25 points to end at 44,878.35.

On the market performance for September 7, Vinod Nair, Head of Research at Geojit Financial Services said, "A decline in U.S. bond yields and crude oil prices injected some positivity into the market. This optimism was most prominent in banking stocks. Interestingly, mid- and small-cap stocks managed to retain investor interest even though their valuations were relatively high. Nonetheless, the persistently weak trade data from China continues to cast a shadow over the global market's outlook."

Further, the foreign institutional investors (FIIs) were net sellers with an outflow of Rs 758.55 crore in Indian stocks on September 7. On the contrary, domestic institutional investors (DIIs) made a slight buying of Rs 28.11 crore worth of equity shares.