Day Trading Guide for Today: 4 Stocks to Buy or Sell on Monday — 18th April
Trading in the stock market can be a lucrative endeavor if done correctly, especially with a day trading guide. In this article, we will provide you with an overview of the Indian stock market and four stocks to buy or sell on Monday, April 17th.
Overview of Indian Stock Market
The Indian stock market managed to finish higher for the ninth straight session on Thursday, April 15th, after recovering from the morning sell-off. The Nifty touched a seven-week high of 17,842, whereas Bank Nifty tested an 11-week high of 42,196 levels.
On a weekly basis, Nifty registered a 1.30% rise, while Nifty Bank index clocked a 2.66% rise in the week gone by. Small-cap index outperformed the Nifty even as the advance decline ratio managed to stay above 1 at 1.21:1.
Day Trading Guide for Stock Market Today
On the outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "The overall chart pattern of Nifty continues to be positive. The next upside targets to be watched around 18,200 levels in the coming weeks. Immediate support for Nifty 50 index is placed at 17,700 levels."
Expecting the bull trend to continue, Rohan Patil, Technical Analyst, SAMCO Securities, said, "The frontline index has given a bullish confirmation by giving a break above the previous intermediate high and neglecting the lower top lower bottom move. The momentum oscillator RSI (14) has witnessed a breakout of a three-month-long consolidation band, and the oscillator has closed above its horizontal trend line with a bullish crossover. Technically, the view remains bullish with buy-on dips to be used as a strategy."
On the outlook for Nifty Bank index, Rahul Ghose, Founder & CEO at Hedged, said, "Bank Nifty today saw a huge short covering rally that took it past its last resistance at 42,000. With this recent leg of up-move, Bank Nifty has come to an uptrend with an immediate target of about 400-500 points on the upside."
Day Trading Stocks to Buy Today
According to stock market experts, Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, the following four stocks are recommended for day trading on Monday, April 17th:
1. Adani Ports
Sumeet Bagadia suggests buying Adani Ports at CMP with a target of ₹675 to ₹680 and a stop loss of ₹650.
2. Punjab National Bank (PNB)
Sumeet Bagadia recommends buying PNB at CMP with a target of ₹50 and ₹52 and a stop loss of ₹46.
3. SBI Card
Ganesh Dongre suggests buying SBI Card at ₹758 with a target of ₹775 and a stop loss of ₹745.
4. Lupin
Ganesh Dongre recommends buying Lupin at ₹671 with a target of ₹695 and a stop loss of ₹645.
These stocks are expected to perform well on Monday, and traders can use these stocks as a part of their day trading strategy.
Conclusion
In conclusion, day trading can be a highly rewarding but also highly risky activity. It requires careful research, analysis, and a solid understanding of market trends and patterns. The stock market can be highly volatile, and it's important for traders to remain disciplined and stick to their strategies in order to minimize risk and maximize profits.
In this article, we have provided a guide for day traders for today, including an overview of the Indian stock market's recent performance, expert opinions on the outlook for the market, and recommendations for four day trading stocks to buy.
We hope this guide has been helpful in providing you with the information you need to make informed decisions as a day trader. Remember to always do your own research and due diligence, and never risk more than you can afford to lose.
Thank you for reading, and best of luck with your day trading endeavors.
FAQ
1. What is day trading?
Day trading is a type of trading where traders buy and sell stocks on the same day, trying to profit from short-term price fluctuations. Day traders typically use technical analysis tools and charts to identify short-term price trends and patterns, and execute trades based on these insights.
2. Is day trading profitable?
Day trading can be profitable, but it is also highly risky. Success as a day trader requires discipline, patience, and a solid understanding of market trends and patterns. Traders must also be able to manage risk effectively and avoid emotional decision-making.
3. How do I become a successful day trader?
To become a successful day trader, you need to develop a solid understanding of the stock market and technical analysis tools. It's also important to have a disciplined approach to trading, to develop a trading plan, and to stick to it. Traders should also be willing to continually learn and adapt to changing market conditions.
4. How much capital do I need to start day trading?
The amount of capital needed to start day trading depends on a number of factors, including your trading strategy, risk tolerance, and the fees associated with your broker. It's generally recommended to start with a minimum of $10,000, although some traders may be able to start with less.
5. What are the risks of day trading?
Day trading is a highly risky activity, and traders can lose money quickly if they make poor decisions or fail to manage risk effectively. The stock market can be highly volatile, and traders must be prepared to handle unexpected price movements. Additionally, traders may be subject to fees and commissions that can eat into profits.