Buy or sell: 3 stocks to buy today — April 1
The Indian stock market has witnessed an upward trend in recent days. Intraday trading can be a lucrative way of earning quick returns. On April 1, Vice President - Technical Research at Prabhudas Lilladher, Vaishali Parekh, recommended three stocks for day trading. This article explores the market trends and analysis, and provides insights into the recommended stocks.
Market Analysis
The Nifty 50 index gained 129 points and closed at 17,080 levels on Wednesday. The BSE Sensex ended 346 points higher at 57,960 mark. The Nifty Bank index shot up 342 points and finished at 39,910 levels. Small-cap and mid-cap indices outperformed key benchmark indices and gained over 1.65%. On an F&O expiry day, NSE cash market volumes were the highest in six months while NSE F&O volumes were the lowest in three months.
Vaishali Parekh of Prabhudas Lilladher believes that for the Nifty 50 index to establish conviction for further upside momentum at the Indian stock market, it is essential to cross the 17,200 zone decisively. For the Nifty Bank index, a decisive breach above 40800 zone is necessary to confirm a positive directional move ahead for the coming days.
Intraday Trading Strategy
Vaishali Parekh recommended three intraday trading stocks for today:
1. Hindustan Unilever Ltd or HUL
Buy at ₹2530, target ₹2630, stop loss ₹2490.
2. Zee Entertainment Enterprises Limited or ZEEL
Buy at ₹216, target ₹226, stop loss ₹212.
3. TVS Motor
Buy at ₹1079, target ₹1125, stop loss ₹1055.
Outlook for Nifty Today
According to Parekh, the Nifty index witnessed a volatile session on Wednesday, taking support near 16,950 zone and picking up momentum to close near the resistance level of 17,100 zone. However, it is crucial for the index to cross the 17,200 zone decisively to establish conviction for further upward movement in the coming days. Parekh suggests that support for Nifty today is placed at 16,950 levels while the resistance is at 17,200 mark.
Outlook for Bank Nifty Today
Bank Nifty witnessed a better performance as compared to the Nifty index on Wednesday. It moved past the significant 200DMA level of 39800 zone with bias improving to some extent and touched the 40000 zone during the intraday session to anticipate further rise in the coming sessions. Parekh states that the daily range for Bank Nifty today is expected to be between 39,400 to 40,400 levels. However, a decisive breach above 40800 zone is necessary for the overall trend to improve and confirm a positive directional move ahead for the coming days.
Conclusion
In conclusion, the stock market has seen a positive momentum in the wake of the ease in the bank crisis in the US, which has had a ripple effect on the global market. The Indian stock market has seen a surge in trading volume, particularly in the cash market, while F&O volumes have been relatively low. Intraday trading strategies for Friday suggest that there are opportunities to be had in the market, particularly with regards to the Nifty 50 index and the Nifty Bank index.
Experts believe that the Nifty 50 index needs to cross the 17,200 zone decisively to establish some conviction for further upward momentum, while a decisive breach above 40,800 zone is necessary for the overall trend to improve and confirm a positive directional move for the Nifty Bank index. Vaishali Parekh of Prabhudas Lilladher has recommended three intraday trading stocks to buy today - HUL, ZEEL, and TVS Motor - with specific targets and stop-losses.
Investors need to carefully evaluate their risk appetite and investment goals before making any decisions in the stock market. While the current market sentiment is positive, it is important to note that market volatility is always a factor to consider. Ultimately, it is crucial to do thorough research and analysis before making any investment decisions.
As with any investment, there are inherent risks involved, but with the right strategy and approach, there are opportunities to be had. It is important to stay up to date with market news and trends and consult with experts before making any decisions. With careful consideration and informed decision-making, investors can potentially benefit from the current market conditions.
FAQs
1. What is intraday trading, and how is it different from regular trading?
Intraday trading is a type of trading where traders buy and sell stocks within the same day, aiming to profit from small price movements. Intraday trading differs from regular trading in the sense that the trader does not hold the stock for a longer period. Intraday traders buy stocks and sell them on the same day, aiming to make a profit from the price difference. Regular traders, on the other hand, buy stocks with a long-term view and hold them for a more extended period, usually months or years.
2. What are some of the benefits of intraday trading?
Intraday trading has several benefits, such as:
a. High liquidity: As intraday traders trade frequently, they can buy and sell stocks quickly, making it easier to convert stocks into cash.
b. Lower risk: Intraday traders hold the stock only for a short period, reducing the risk of a sudden price decline or any other market volatility.
c. High returns: Intraday traders can earn high returns, as they profit from small price movements and invest a small amount.
d. Quick profits: Intraday traders can make quick profits within a short period of time, as they buy and sell stocks on the same day.
3. What are the risks involved in intraday trading?
Intraday trading has some risks, such as:
a. Market volatility: The stock market is volatile, and intraday traders may face losses due to sudden price movements.
b. High leverage: Intraday traders usually trade on margin, which means they borrow money from the broker to trade. It increases their buying power but also amplifies the risk of losses.
c. Emotional trading: Intraday traders may make impulsive trading decisions based on emotions such as fear, greed, or hope, leading to losses.
4. How can I start intraday trading?
To start intraday trading, you need to follow these steps:
a. Open a trading account with a broker who offers intraday trading services.
b. Transfer funds to your trading account.
c. Learn about intraday trading strategies, tools, and techniques.
d. Select the stocks you want to trade.
e. Place orders to buy and sell stocks.
f. Monitor your trades and book profits or losses as per your trading plan.
5. What are some of the best intraday trading strategies?
Some of the popular intraday trading strategies are:
a. Scalping: A strategy where traders buy and sell stocks quickly to profit from small price movements.
b. Momentum trading: A strategy where traders buy stocks that are gaining momentum and sell stocks that are losing momentum.
c. Breakout trading: A strategy where traders buy stocks that break out of a price range and sell stocks that break down from a price range.
d. News-based trading: A strategy where traders buy or sell stocks based on news and events that affect the stock market.
Remember, before starting intraday trading, it's crucial to do thorough research, learn about the market, and develop a sound trading plan that suits your risk appetite.