Stocks To Buy Today For Short-Term: Day Trading Guide By VLA Ambala On Thursday

During Wednesday's session, Nifty formed a bullish Marubozu candlestick pattern on a daily timeframe. By the end of the session, the index had gained 0.35% in intraday and closed at 24,780. On the other hand, Bank Nifty formed a Dragonfly Doji candlestick pattern near its 20-day and 50-day EMAs, said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Small-cap indices, including the Small Cap 50, Small Cap 100, and Small Cap 250, outperformed the overall market, with gains ranging from 1-1.50% in intraday. During the day, sectors like Nifty Banks, PSU Banks, Realty, and IT saw marginal losses, while others managed to close on a positive note.

The RSI levels on the daily and weekly charts suggest a cooling of the price. This sentiment was also seen in the volatility indicator, India VIX, which was trading around 13.30 points and declined by 3.30%, VLA Ambala added.

Market Overview for 22 August 2024, Thursday

"For the Nifty index, the key support levels for today's trading session will be between 24,720 and 24,630, whereas resistance will likely be between 24,850 and 24,900. On the other hand, the Bank Nifty Index could find key support between levels 50,630, 50,450, or 50,210, and witness 51,180 and 51,490, acting as their major resistance points," VLA Ambala predicted.

Options Market Insights

The options market is signalling a bullish sentiment, with more Put writing than Calls as the index maintains its strong bullish structure. Significant open interest is observed at the 25,000 Call (1.2 crore contracts) and the 24,500 Put (80.33 lakh contracts), with notable activity around the 24,600-24,700 Puts and 24,800-24,900 Calls. The Put-Call Ratio (PCR) has slightly decreased from 1.13 on Tuesday to 1.10, still indicating positive sentiment as it remains above 1. The Max Pain Point, where the most open options contracts are, is at 24,700, serving as a key level influencing the index's movement, Dhupesh Dhameja, Technical Analyst, SAMCO Securities said.

Stocks to Checkout on 22 August 2024, Thursday

V.L.A. Ambala has recommended 2 stocks to trade on Thursday.

RAILTEL

• Sell: Rs. 480-479
• Target: Rs. 472/469/465/461
• Stop Loss: Rs. 486
• Holding Period: Intraday

JINDALSTEL

• Buy: Rs. 954-957
• Target: Rs. 966/969/975
• Stop Loss: Rs. 941
• Holding Period: Intraday

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, and technical analysis.

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.