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

Indian markets are likely to have a flattish tone in the opening bell of Tuesday as the Gift Nifty trades muted. Also, Asian shares traded mixed despite a positive trend in Wall Street overnight. Traders will be awaiting CPI inflation and IIP data due later in the day. In the previous session, domestic equities witnessed impressive buying with Nifty 50 breaching over the psychological 20,000 mark. Sensex also crossed over the 67,000 mark, however, resisted touching its all-time high levels. Bulls were across sectoral indices with midcap and smallcap stocks outshining their large-cap counterparts.

Gift Nifty, formerly known as SGX Nifty, traded at 20,117.5, down by 0.5 points at around 7.20 am, on Tuesday. The index opened at 20,118.0 and traded in the range of intraday high and low of 20,121.0 to 20,111.5 respectively.

Tuesday's Trade Guide:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects the Nifty Spot Index to find support around 19,850/19,800 during Thursday's trade, while resistance is seen at 20,150/20,200. Further, the Bank Nifty spot index is likely to find support in the range of 45,300/45,250 and resistance is seen between 46,000/46,050.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "We may see some consolidation around the current levels after reclaiming the record high but the tone is likely to remain positive. While all the sectors are contributing to the move, we feel the performance of banking would play a crucial role in making a sustained up move from hereon. At the same time, participants should maintain caution in stock selection, especially in the midcap and smallcap space."

Nifty 50 Support Level:

In his technical view for Nifty 50, Rupak De, Senior Technical analyst at LKP Securities said, looking ahead, market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark.

Bank Nifty Support Level:

In case of Bank Nifty, Kunal Shah, Senior Technical and derivative analyst at LKP Securities said, the Bank Nifty index is currently experiencing a strong bullish momentum, with buyers dominating the market and pushing the index higher. The next significant resistance level for the index is at 46,000, where a substantial amount of call writing is evident. On the downside, the key support level has shifted to 45,000, where the highest open interest built up on the put side.

Intraday Stock Picks Today:

Parekh has recommended 3 stocks to buy on Tuesday::

- Buy Bank of Baroda Ltd at Rs 202.80 with a stop loss of Rs 199 for a target of Rs 212.

- Buy Texmaco Rail & Engineering at Rs 159.65 with a stop loss of Rs 156 for a target of Rs 174.

- Buy CanFin Homes at Rs 788.55 with a stop loss of Rs 778 for a target of Rs 830.

Stock News Today:

Stocks in the news are -- Sun Pharma Advanced Research Company, Mishtann Foods, ICICI Bank, Gufic Biosciences, Krishna Institute of Medical Sciences, Power Grid Corporation of India, and Rainbow Children's Medicare.

FII And DII Data:

Both FIIs and DIIs were net buyers on September 11 following the stellar rally that led Nifty 50 to cross the 20,000 mark.

The foreign institutional investors (FIIs) invested Rs 1,473.09 crore in Indian stocks on September 11. Also, domestic institutional investors (DIIs) made a buying of Rs 366.24 crore worth of equity shares.

F&O Ban List:

Under the F&O ban list, the exchange NSE added BHEL on September 12, while stocks like Chambal Fertilisers and Chemicals, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, Punjab National Bank and SAIL were retained on the list. However, Balrampur Chini Mills has exited the list after meeting the criteria.

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

Market Performance for September 11:

On September 11th, Nifty closed at 19,996.35 up by 176.40 points or 0.9%, while Sensex advanced by 528.17 points or 0.79% to settle at 67,127.08. The 50-scrip benchmark touched a new historic high of 20,008.15 on this day.

Meanwhile, Bank Nifty zoomed by 477.45 points or 1.06% to end at 45,633.85. The Bank Nifty index is next in line to drive towards the 46,000 mark likely later this week.

Adani shares like Adani Ports, and Adani Enterprises were top gainers on Nifty 50, soaring by 7.10% and 3.68% respectively. Other stocks like Axis Bank, Apollo Hospital and Power Grid were also among the top bulls with upside of more than 2% each.

Further, the Nifty Midcap 100 and Smallcap 100 index continued their back-to-back strong performance and recorded new all-time highs of 41,467.20 and 13,006.35 respectively.

Of the total 3,942 stocks traded on BSE, 2,067 stocks were positive, 1,711 stocks declined and 164 stocks were muted. A total of 370 stocks touched new 52-week highs and 17 stocks struck their 52-week lows.

On Monday''s robust performance, Vinod Nair, Head of Research at Geojit Financial Services said, "The domestic markets began the day on a positive note, bolstered by the historic consensus achieved at the G20 summit, which instilled confidence among investors. Higher-than-expected loan growth data and strong profitability along with lower NPA in PSU banks attracted investor interest. Additionally, expectations of easing inflation, driven by a decline in vegetable prices, fueled optimistic sentiment, leading to a market rally. The return of China from deflation, growth in new bank loans, and reduced concerns about US rate hikes have paved the way for the domestic markets to reach new all-time highs."

Global Trends:

Asian shares traded on a mixed note on Tuesday as the dollar pulled back from its recent robust rallies against a basket of currencies. Japan's Nikkei 225 inched up by 0.2%, on the contrary, South Korea's KOSPI dipped by 0.60% and Australia's ASX 200 was marginally down 0.2%. Notably, the Hang Seng index also shed 0.9%, followed by China's mainboard Shanghai Composite Index which slipped lower as well.

Markets are now focusing on the US inflation data that is due on Wednesday, and also the European Central Bank meeting later in the week to set the tone of interest rates prospects ahead.

Also, in the early trade, US futures inched lower by 0.2%, however, the US' 10-year Treasury notes kept a firm grip to 4.2980%. Brent crude performed steady at $90.59 per barrel. Finally, spot gold stayed near $1,921 an ounce.

As per Reuters, overnight, the weaker dollar and upgrade on Tesla from analysts at Morgan Stanley helped U.S. stock markets gain. Tesla rose 10%.

The Dow Jones Industrial Average advanced by 87.13 points, the S&P 500 index jumped by 0.7%, and the tech-heavy Nasdaq Composite index outperformed with an upsideo of 1.14%.

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.