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

The Indian market is likely to see a bearish start on Tuesday tracking feeble global cues. Gift Nifty traded lower, while Asian shares fell as prospects of higher US interest rates dragged tech stocks. In the previous session, Sensex and Nifty 50 ended marginally up as buying in realty, banking and financial stocks offset losses in IT, metal and media stocks.

On September 25, Sensex ended at 66,023.69, up by 14.54 points or 0.02%. While Nifty 50 settled flat at 19,674.55. Bajaj Finance, Bajaj Finserv, Tata Consumer, APL Apollo, and Coal India were top gainers, while Hindalco, SBI Life, Hero MotoCorp, Infosys and M&M were top bears. On the other hand, Nifty Midcap 100 index outperformed with nearly 0.7% upside, while Nifty Smallcap 100 index edged higher gradually.

Gift Nifty:

Gift Nifty, formerly known as SGX Nifty, traded at 19,655.5, down by 73 points or 0.37%. The benchmark opened at 19,728.5, and traded in the range of 19,696.5 and 19,648 respectively.

Day Trading Guide For Today:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects a support level in the range of 19,550/19,500 for Nifty 50 on Tuesday, however, resistance is factored around 19,800/19,850. While she sees Bank Nifty as having a support level of 44,400/44,350 with resistance around 45,000/45,050.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "It is a normal pause and we may see some rebound too due to oversold positions. However, the upside seems capped citing a strong hurdle around the 19800-19900 zone. Besides, weak global cues would continue to weigh on the sentiment. We thus reiterate our view to stay stock-specific and focus more on risk management."

Nifty Spot Index Support Level Today:

Rupak De, Senior Technical analyst at LKP Securities said, the index remained volatile before closing with a doji pattern on the daily timeframe. This suggests a possible pause in the prevailing bearish trend. From here, the market might consolidate a bit before starting a new trend. Support on the lower end is pegged at 19,600; a fall below 19,600 might initiate fresh shorts. On the higher end, resistance is placed at 19,755."

Bank Nifty Index Support Level Today:

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, the Bank Nifty index experienced a brief respite following a four-day sell-off, with buyers gaining traction from lower levels.However, the index continues to trade below its 20-day moving average (20DMA), which is currently positioned at 45,000. A close above this level would signal a potential resumption of the upward momentum.On the downside, the lower-end support now rests within the 44,500 to 44,000 zone. A breach below this support range could result in additional selling pressure on the index.

Intraday Stocks Picks:

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

1. GNFC: Buy at Rs 603 with a stop loss of Rs 592 for a target price of Rs 630.

2. Oberoi Realty: Buy at Rs 1134 with a stop loss of Rs 1120 for a target price of Rs 1180.

3. DCX India: Buy at Rs 306.95 with a stop loss of Rs 301 for a target price of Rs 317.

Stocks In News:

Stocks like SBI, Tata Steel, Aditya Birla Fashion, Larsen & Toubro, Wipro, GR Infraproject, Fortis Healthcare, Ujjivan Small Finance Bank, Welspun Corp, and RPP Infra Projects will be in focus.

Also, companies like Adani Green Energy, Biocon, Som Distillries and Breweries, Metropolis Healthcare, Five-Star Business, Anupam Rasayan India, Yatharth Hospital, and Eicher Motors will be holding their investors meet.

FIIs and DII data:

On September 25th, foreign institutional investors (FIIs) and domestic institutional investors showed mixed trend.

In Indian stocks, FIIs extended its selling bias to Rs 2,333.03 crore worth shares, while DIIs made buying of Rs 1,579.28 crore.

F&O Ban List:

In the futures & options (F&O) ban list for September 26, NSE added Balrampur Chini Mills to the list. However, it retained stocks like Canara Bank, Granules India, Hindustan Copper, and Indiabulls Housing Finance. Meanwhile, the exchange excluded Delta Corp, and Manappuram Finance from the list.

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

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.