Stocks to Buy or Sell Today: 4 Short-Term Trading Ideas by Experts for 27 March 2023
As we approach the end of March, the Indian stock market seems to be trading higher on Monday, buoyed by positive global cues. However, the Indian equities witnessed a decline last Friday as the S&P BSE Sensex fell by nearly 400 points, and the Nifty50 closed below the 17,000 levels. In this article, we will discuss the short-term trading ideas proposed by experts for 27 March 2023.
Market Overview
India VIX was up by 5.18% from 14.49 to 15.24 levels on Friday, increasing volatility after declines from the last three sessions. This discomforted the bulls. However, foreign investors have pumped Rs 7,200 crore into Indian equities so far this month, supported by bulk investment in the Adani Group companies. This came after a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January, as reported by PTI. Prior to that, FPIs infused a net amount of Rs 11,119 crore in December.
On the monthly Options front, the maximum Call OI is placed at 18000 and then towards 17100 strikes, while the maximum Put OI is placed at 17000 and then towards 16500 strikes. “Options data suggests a broader trading range in between 16600 to 17300 zones while an immediate trading range in between 16700 to 17150 zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said. “Now, till Nifty50 holds below 17000 zones weakness could be seen towards 16850 and 16666 zones, while on the upside hurdles are placed at 17071 and 17171 levels,” recommends Taparia.
Short-Term Trading Ideas for 27 March 2023
We have collated stocks from various experts for traders who have a short-term trading horizon:
Aurobindo Pharma: Buy
Aurobindo Pharma has a target price of Rs 538 and a stop loss of Rs 485. This stock has been on an uptrend and is expected to continue its growth. With the potential for good returns, it is a good stock to buy for traders with a short-term horizon.
Ramco Cement: Buy
Ramco Cement has a target price of Rs 790 and a stop loss of Rs 715. It has been consolidating in the last few sessions, and now it has the potential to move higher. It is a good buy for traders with a short-term horizon.
UPL: Sell
UPL has a target price of Rs 640 and a stop loss of Rs 730. This stock has been on a downtrend and is expected to continue its decline. Traders with a short-term horizon can consider selling this stock.
GNFC: Sell
GNFC has a target price of Rs 476 and a stop loss of Rs 544. This stock has been underperforming in the last few sessions and is expected to continue its downtrend. It is a good sell for traders with a short-term horizon.
Conclusion
The Indian stock market seems to be trading higher on Monday, with positive global cues. However, traders need to be cautious, considering the volatile market conditions. Experts have suggested short-term trading ideas that traders can consider based on their risk appetite. Aurobindo Pharma and Ramco Cement are good buys, while UPL and GNFC are good sells for traders with a short-term horizon.
FAQS
1. What is short-term trading?
Short-term trading refers to buying and selling financial assets within a short period, usually ranging from a few days to a few weeks. Traders who engage in short-term trading aim to profit from short-term price movements in the market, and they typically use technical analysis to identify trends and patterns that can help them make informed trading decisions.
2. What are the risks of short-term trading?
Short-term trading carries several risks, including market volatility, liquidity issues, and transaction costs. Since short-term traders hold their positions for a short period, they are exposed to sudden price movements, which can lead to significant losses. Additionally, short-term traders need to pay close attention to market liquidity and transaction costs, which can erode their profits.
3. What are the benefits of short-term trading?
Short-term trading offers several benefits, including the potential for quick profits and the ability to capitalize on short-term market trends. Short-term traders can also take advantage of leverage, which can magnify their gains. Moreover, short-term trading can be a more active and engaging approach to investing, which may appeal to some traders.
4. How can I develop a short-term trading strategy?
To develop a short-term trading strategy, you need to identify your goals, risk tolerance, and trading style. You also need to have a solid understanding of technical analysis and be able to use charting tools to identify market trends and patterns. Additionally, you need to have a well-defined set of rules for entering and exiting trades, managing risk, and maximizing profits.
5. What is technical analysis?
Technical analysis is a method of analyzing financial markets that involves studying past market data, primarily price and volume data, to identify trends and patterns that can help predict future price movements. Technical analysts use charting tools and indicators to analyze market data and identify trading opportunities.
6. What is a stop-loss order?
A stop-loss order is a type of order that traders use to limit their losses on a trade. A stop-loss order is placed at a predetermined price level, and if the price reaches that level, the order is executed, and the trade is closed. Stop-loss orders are essential risk management tools that help traders limit their losses and protect their capital.
7. What is a target price?
A target price is a price level that traders set as a goal for their trades. A target price is usually based on technical analysis and represents the price level at which traders believe the market will move. Traders use target prices to determine their profit targets and to manage their risk.
8. How do I manage risk in short-term trading?
To manage risk in short-term trading, you need to have a well-defined set of rules for entering and exiting trades, managing stop-loss orders, and limiting your exposure to any one asset or market. You also need to be aware of the risks associated with leverage and be able to use it responsibly. Additionally, you need to have a solid understanding of market liquidity and transaction costs and be able to factor them into your trading decisions.