Day trading guide for stock market today: Seven stocks to buy or sell on Friday — 23rd February

Stock market today: After the sharp selling in small and mid-cap stocks, the Indian stock market opened lower on Thursday. However, bulls came back strongly in the last session and most of the Indian sectors witnessed sharp buying, which helped Dalal Street recuperate its losses and end higher. Except for the Bank Nifty index, all sectors ended in the green zone with IT and auto being the outperformers.

The Nifty 50 index finished 162 points higher at the 22,217 level, the BSE Sensex gained 535 points and closed at the 73,158 mark while the Bank Nifty index ended 99 points lower at the 46,919 level. In the broad market, the mid-cap index outperformed the Nifty 50 index even as the advance-decline ratio improved to 1.22:1.

Global stocks rallied, with Japan’s benchmark hitting a record high and Europe’s on track to do the same after Nvidia’s blowout sales forecast reinforced investor conviction in the boom in generative AI use.

"Mid-cap and small-cap stocks remained under the grip of the bears which dragged the overall markets lower in the opening trade. As the day progressed, the Index gradually started to recuperate its losses and in the last session, a strong comeback was seen across the board which propelled the Index to end the session higher at 22,217.45 with gains of 162.40 points. Except for BankNifty, all the sectors ended the day in green with IT and Auto being the outperformers," said Aditya Gaggar Director at Progressive Shares.

Day trading guide for stock market today

On the outlook for the Nifty 50 index, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said, "A long bull candle was formed on the daily chart with a long lower shadow. Technically, this pattern indicates a sharp comeback of bulls after two sessions of weakness. The up move has negated the bearish implication of the bearish engulfing pattern of Wednesday. The short-term trend of Nifty has turned up sharply after a small decline. Having breached the recent highs of 22,249 level, the Nifty 50 index is expected to move towards the next upside target of 22,500 to 22,600 levels in one week. Immediate support for Nifty today is placed at the 22,050 mark."

On the outlook for the Bank Nifty today, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, "Bank Nifty witnessed a decent revival from 46,400 zone but resisted near the 47,000 levels to end lower near 46,900 zone and has been underperforming as compared to the Nifty index. The index would have the important support of 50EMA level near the 46,200 zone and would need a decisive breach above 47,400 levels to improve the bias."

Nifty Call Put Option data

Speaking on the Nifty Call Put Options data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, "One of the major total Call open interest was seen at 22300 and 22500 strikes with a total open interest of 53306 and 77044 contracts respectively. The strike price of 22600 and 22700 saw one of the major open interest addition of 25420 and 36653 contracts respectively," adding, "One of the major Put open interests was seen at 22000 and 21900 strikes with a total open interest of 135952 and 75232 contracts respectively. One of the major Put open interest additions was seen at 22000 strike which added 49683 contracts in open interest."

Bank Nifty Call Put Option data

On the Bank Nifty Call Put Options data, Chinmay Barve of Profitmart Securities said, "One of the major total Call open interest was seen at 47500 and 48000 strikes with total open interest of 127700 and 112036 contracts in open interest. The strike price of 47500 saw one of the major additions of 49933 contracts in open interest," adding, "One of the major total Put open interest was seen at 47000 and 46500 strikes with a total open interest of 107376 and 103381 contracts respectively. One of the major Put open interest additions was seen at 46500 strike which added 40708 contracts in open interest."

Day trading stocks for today

On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi; and Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher — recommended seven stocks to buy or sell today.

Sumeet Bagadia's day trading stocks

1] Maruti Suzuki India Ltd or MSIL: Buy at ₹11657, target ₹12025, stop loss ₹11390.

Maruti Suzuki share price is exhibiting strong bullish momentum, currently trading at an all-time high of ₹11695 levels. The recent breakout above the crucial resistance at ₹11480 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

2] Godrej Consumer Products: Buy at ₹1256.35, target ₹1330, stop loss ₹1208.

Godrej Consumer Products Limited (GODREJCP) appears to have exhibited a notable resurgence in its stock price. It recently rebounded from a support level of ₹1220 and is presently trading at around ₹1256.35. The fact that the stock is trading above all the important Exponential Moving Averages (EMA) suggests that there's significant strength.

Ganesh Dongre's stocks to buy today

3] GAIL: Buy at ₹183, target ₹192, stop loss ₹177.

In the short-term trend, GAIL share price has a bullish reversal pattern, technically retrenchment could be possible till ₹192. So, holding the support level of ₹177 this stock can bounce toward the ₹192 level in the short term. Hence, the trader can go long with a stop loss of ₹177 for the target price of ₹192.

4] LT: Buy at ₹3363, target ₹3410, stop loss ₹3330.

In the short-term trend, LT share price has a bullish reversal pattern, technically retrenchment could be possible till ₹3410. So, holding the support level of ₹3330 this stock can bounce toward the ₹3410 level in the short term. Hence, the trader can go long with a stop loss of ₹3330 for the target price of ₹3410.

Shiju Koothupalakkal's buy or sell stocks

5] NHPC: Buy at ₹94.10, target ₹100, stop loss ₹91.

The stock after forming the higher low pattern on the daily chart taking support near the ₹78 zone, has indicated a decent pullback and with a short consolidation has once again witnessed a positive candle to improve the bias and is anticipated to carry on with the gain further ahead. The RSI also well placed, has shown improvement, and a further upside move is expected. We suggest buying the stock for an initial upside target of ₹100 keeping the stop loss of ₹91.

6] Mishra Dhatu Nigam: Buy at ₹441.80, target ₹462, stop loss ₹428.

The stock after the slide witnessed from 545 levels has stabilized near the strong support zone of ₹390 levels and indicated a decent pullback with a positive candle formation to move past the significant 50EMA level of ₹434 to improve the bias and anticipate further rise in the coming days. With the RSI cooling off from the highly overbought zone has flattened out and currently is well placed indicating a trend reversal to signal a buy. With the chart looking good, we suggest a buy in this stock for an initial target of ₹462 level keeping the stop loss of ₹428.

7] LIC: Buy at ₹1064.40, target ₹1117, stop loss ₹1030.

The stock after a short consolidation has indicated a positive candle formation on the daily chart to once again trigger for fresh upward move with support maintained near the ₹1027 level. With the RSI improving and signaling a buy, we expect a further rise for an initial target of ₹1117 levels keeping the stop loss of ₹1030.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.