Day trading guide for today: 5 stocks to buy or sell on Friday — 25th March 2023
Day trading is a popular method of trading in the stock market, where traders buy and sell stocks within the same day to take advantage of short-term price movements. However, day trading can be a risky business, and it requires careful planning and analysis to be successful. In this article, we will provide a day trading guide for today and highlight 5 stocks that traders can consider buying or selling on Friday, 24th March.
Market Recap
Before we delve into the day trading guide for today, let's first take a look at how the Indian stock market performed on Thursday. The NSE Nifty lost 75 points and closed at 17,076 levels, while the BSE Sensex dipped 289 points and finished at 57,925 mark. The Nifty Bank index nosedived 382 points and closed at 39,616. The small-cap index fell less than the Nifty even as the advance decline ratio fell to 0.62:1.
Day Trading Guide for Friday
Speaking on the outlook for Nifty today, Deepak Jasani, Head of Retail Research at HDFC Securities, said, "Nifty could not build on to the two-day gains. 17200-17225 is proving to be a tough resistance. On falls, 16985 could provide support. If Nifty does not resume the uptrend by tomorrow, then the short term top would have been made at 17207."
Expecting the bear trend to further continue, Rohan Patil, Technical Analyst at SAMCO Securities, said, "Technically, the trend for the Nifty is bearish, and selling on every rally can be a profitable strategy."
"FIIs still have short heavy short positions and seem not willing to cover them. Hence, traders should be cautious in pullback moves, and until we see short covering by the FII's, one should avoid aggressive long formations," said Ruchit Jain, Lead Research at 5paisa.com.
"For Nifty to gather momentum on the upside, Bank Nifty has to close above the 40,200 mark, which is its near term resistance," said Rahul Ghose, Founder & CEO at Hedged.
Stocks in Focus
On stocks that bargain hunters may look at, Rahul Ghose said, "Traders are recommended to be stock-specific in this sideways market. The life insurance company charts seem to suggest that they are now ready to come out of their bear market of the last couple of months. One can initiate a long on HDFC Life from this sector at the ₹475 to ₹477 levels, keeping a stop loss below ₹452 for higher targets."
Day Trading Stocks to Buy Today
On intraday stocks for today, stock market experts - Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President - Research at IIFL Securities, and Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi - recommended 5 stocks to buy today.
1. ONGC
Sumeet Bagadia's intraday stocks for today include ONGC. He recommends buying ONGC at CMP, targeting ₹156 to ₹158, with a stop loss at ₹148.
2. Zydus Life
Zydus Life is another stock that traders can consider buying today. Sumeet Bagadia recommends buying Zydus Life at CMP, targeting ₹495 to ₹500, with a stop loss at ₹470.
3. Tata Motors
Anuj Gupta's stock of the day is Tata Motors. He recommends buying Tata Motors at CMP, targeting ₹440, with a stop loss at ₹399.
4. Colgate-Palmol
The fourth stock in focus on this day trading guide is Colgate-Palmolive. Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, recommends buying Colgate-Palmolive at ₹1521, targeting ₹1560, with a stop loss at ₹1480.
Colgate-Palmolive is a global consumer goods company that produces and distributes personal care and home care products. The company's product portfolio includes toothpaste, toothbrushes, mouthwash, soap, detergents, and dishwashing liquid, among other items.
The company has a strong presence in India and has been operating in the country for over 80 years. Colgate-Palmolive India Limited (CPIL) is listed on the Indian stock exchanges and has a market capitalization of over ₹50,000 crore.
In the past few years, Colgate-Palmolive has faced stiff competition in the Indian market from new players and established brands alike. The company's market share has declined, and it has been struggling to maintain its dominant position in the oral care segment.
However, the company has been taking steps to revitalize its business and regain its lost ground. It has been investing in product innovation and marketing to attract new customers and retain existing ones. The company has also been focusing on cost optimization and efficiency improvements to improve its margins.
In the third quarter of FY21, Colgate-Palmolive India reported a net profit of ₹274.1 crore, up 12.3% YoY, driven by strong revenue growth and cost optimization initiatives. The company's revenue grew by 10.3% YoY to ₹1,254.8 crore, led by higher sales volumes across all categories.
The company's management remains optimistic about the future and is confident of sustaining its growth momentum. It expects to continue investing in product innovation and marketing to drive growth and improve its competitive position in the market.
From a technical perspective, Colgate-Palmolive's stock has been trading in a range-bound manner in the past few weeks. The stock has been trading between ₹1450 and ₹1550 levels, indicating a lack of direction.
However, the stock's medium-term trend remains bullish, and it has been trading above its 50-day moving average for the past several months. This suggests that the stock is in a long-term uptrend and is likely to continue moving higher in the coming months.
Ganesh Dongre's recommendation to buy Colgate-Palmolive at ₹1521 is based on a technical analysis of the stock's chart. He expects the stock to move higher and reach his target price of ₹1560 in the near future.
Investors looking to trade Colgate-Palmolive's stock on this day may consider Ganesh Dongre's recommendation and buy the stock at the recommended price level. However, as with all investments, it is important to do one's own research and consult with a financial advisor before making any investment decisions.
5. ITC
The fifth and final stock in focus on this day trading guide is ITC. Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, recommends buying ITC at ₹380, targeting ₹392, with a stop loss at ₹374.
ITC Limited is an Indian conglomerate that operates in the consumer goods, hospitality, and agribusiness sectors. The company's product portfolio includes cigarettes, packaged foods, personal care products, and stationary, among others.
The company has a strong presence in India and is one of the country's largest employers, with over 30,000 employees. ITC is also listed on the Indian stock exchanges and has a market capitalization of over ₹2.5 lakh crore.
6. Bharti Airtel
Bharti Airtel is the third-largest telecom operator in the world and the largest in India. The company offers a wide range of services, including mobile voice and data services, fixed-line broadband, and digital TV. Bharti Airtel is also the first telecom company in India to launch 4G services.
According to Sumeet Bagadia, Executive Director at Choice Broking, Bharti Airtel is a good stock to buy for the long term. He recommends buying the stock at CMP, targeting ₹750 to ₹780, with a stop loss at ₹685.
7. HDFC Bank
HDFC Bank is the largest private sector bank in India and is known for its excellent customer service and innovative banking solutions. The bank offers a wide range of financial products and services, including personal banking, corporate banking, and investment banking.
According to Karan Shah, Head of Research at ICICI Direct, HDFC Bank is a good stock to buy for the long term. He recommends buying the stock at CMP, targeting ₹2,000 to ₹2,200, with a stop loss at ₹1,710.
8. Reliance Industries
Reliance Industries is one of the largest conglomerates in India and has interests in a wide range of industries, including petrochemicals, refining, oil and gas exploration, telecom, retail, and more. The company is also the parent company of Reliance Jio, which is one of the largest telecom operators in India.
According to Abhimanyu Sofat, Head of Research at IIFL Securities, Reliance Industries is a good stock to buy for the long term. He recommends buying the stock at CMP, targeting ₹3,200 to ₹3,400, with a stop loss at ₹2,950.
9. Tata Consultancy Services
Tata Consultancy Services (TCS) is one of the largest IT services companies in the world and is headquartered in Mumbai, India. The company offers a wide range of services, including IT consulting, application development, and maintenance, infrastructure management, and more.
According to Karan Shah, Head of Research at ICICI Direct, TCS is a good stock to buy for the long term. He recommends buying the stock at CMP, targeting ₹4,100 to ₹4,500, with a stop loss at ₹3,350.
10. Conclusion:
In conclusion, there are several good long-term investment options available in the Indian stock market. Investors should choose stocks based on their risk appetite, investment horizon, and financial goals. It is important to do thorough research and analysis before making any investment decisions.
Investors should also consider diversifying their portfolios to mitigate risk. It is advisable to not put all your money in one stock or sector. Instead, investors should invest in a mix of stocks across different sectors to create a diversified portfolio.
10. FAQ:
1. What are the best long-term investment options in the Indian stock market?
Some of the best long-term investment options in the Indian stock market are HDFC Bank, Reliance Industries, Tata Consultancy Services, Bharti Airtel, Colgate-Palmolive, and Zydus Life.
2. What is the recommended investment horizon for long-term investments?
The recommended investment horizon for long-term investments is typically five to ten years or more. This allows investors to ride out market volatility and benefit from the long-term growth potential of the stocks.
3. Should I invest in only one stock or diversify my portfolio?
It is not advisable to invest all your money in one stock or sector. Instead, investors should diversify their portfolio by investing in a mix of stocks across different sectors. This helps mitigate risk and create a well-rounded portfolio.