Stock market today: Day trading guide for Nifty 50 to Bank Nifty, six stocks to buy or sell on Wednesday — 6th March

Stock market today: The domestic equity market benchmarks, including the Nifty 50 and the Sensex, halted their four-day winning streak due to subdued global cues, on Tuesday, March 5. The Nifty 50 concluded the trading day with a decrease of 49 points, representing a 0.22 percent decline, closing at 22,356.30. Similarly, the Sensex finished at 73,677.13, marking a dip of 195 points or 0.26 percent. The BSE Midcap index saw a minor decline of 0.17 percent, while the Smallcap index exhibited weaker performance compared to the benchmark Sensex, dropping by 0.63 percent.

“Nifty snapped a 4-day winning streak on account of profit booking. India’s service PMI eased to 60.6 in Feb, dampening the sentiments. The index closed with a loss of 49 points at 22356 levels. Sector-wise it was a mixed bag with buying seen in PSU Bank, Auto, and Oil & Gas. IPO market saw a stellar debut today with Exicom and Platinum listing at a premium of 87% and 33%. Markets were also lackluster ahead of key US economy data like US Service PMI to be released today,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Day trading guide for stock market today

On the outlook for the Nifty 50 today, Rupak De, Senior Technical Analyst, LKP Securities, "Bulls and bears experienced another day of minor clashes without arriving at a definitive outcome. The sentiment remains positive, with the index staying above the short-term moving average. The momentum indicator RSI is showing a bullish crossover. For a potential rally towards 22600 and beyond, Nifty needs to decisively breach the 21400 level. On the downside, support is positioned at 22200."

On the outlook for the Bank Nifty today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, “The Bank Nifty bulls maintained their control, holding firm above the crucial support level of 47400. The immediate resistance for the index is positioned at 48000, and a successful breach of this level is anticipated to propel the index towards its all-time high. The overall outlook remains bullish, and any declines toward the mentioned support level are considered buying.”

On the outlook for the Indian stock market today, Vinod Nair, Head of Research, Geojit Financial Services, "The domestic market experienced range bound movement post hitting new record high in the preceding day, influenced by cautious trend in global peers ahead of the Fed Chair's congressional testimony and key U.S. jobs data. The absence of significant stimulus measures from China further dampened sentiment. Mid and small-cap stocks continued to underperform due to their higher valuations. The IT sector sustained recent losses amid concerns over delays in rate cuts by the US Fed. However, PSU banks outperformed, while auto stocks gained momentum supported by healthy volume numbers and pick-up in rural demand."

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 22400 and 22500 strikes with total open interest of 130334 and 115982 contracts respectively. Strike price of 22650 Call saw one of the major open interest addition of 27915 contracts,” adding, "One of the major total Put open interests was seen at 22200 and 22000 strikes with total open interest of 164995 and 152935 contracts respectively. Strike price of 22400 Put saw one of the major reduction in open interest where it shed 37569 contracts.”

Bank Nifty Call Put Option data

On the Bank Nifty Call Put Options data, Chinmay Barve said, “One of the major total Call open interest was seen at 48000 and 48200 strikes with total open interest of 185083 and 107757 contracts respectively in open interest. Strike price of 48200 Call saw some of the major addition of 60300 contracts respectively in open interest,” adding, “ Some of the major total Put open interest was seen at 47300 and 47000 strike with total open interest of 206991 and 246361 contracts. One of the major Put open interest addition was seen at 47300 strike which added 123693 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 Virat Jagad, Technical Analyst at Bonanza Portfolio — recommended six stocks to buy or sell on Wednesday.

Sumeet Bagadia's stocks to buy today

1] Polycab India: Buy at ₹4913.30, target ₹5140, stop loss ₹4800

POLYCAB, currently priced at ₹4913.30, has recently broken out of a consolidation phase that ranged between ₹4700 and ₹4800. This breakout, characterized by a bullish candle and significant trading volume, indicates strong buying interest and suggests the potential for further price appreciation.

Additionally, POLYCAB is trading above key Exponential Moving Averages (EMAs), such as the 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the possibility of continued upward movement in the stock price. The Relative Strength Index (RSI) at 65 also supports this outlook, showing an uptrend in prices and confirming the current bullish sentiment.

For investors looking to enter the market, a recommended entry point for buying POLYCAB is at ₹4913.30. To manage risk effectively, setting a stop-loss (SL) at ₹4800 is advisable. This SL level acts as a protective measure, helping to minimize potential losses in the event of a market reversal.

In conclusion, POLYCAB offers an appealing buying opportunity, with a target price of ₹5140. However, investors should exercise caution and implement risk management strategies, such as setting a stop-loss, to protect their investments.

2] Solar Industries India: Buy at ₹7760.15, target ₹8094, stop loss ₹7655

SOLARINDS is currently trading at ₹7760.15. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of ₹7400 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹8094 levels. On the downside, substantial support is evident near ₹7650.

Furthermore, SOLARINDS is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 74.33, signalling an upward trajectory and confirming an increase in buying momentum. .

In summary, considering the technical analysis and prevailing market conditions, SOLARINDS appears to present a promising buying opportunity for those targeting a ₹8094 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹7655 to protect the investment in case of an unexpected market reversal.

Ganesh Dongre's day trading stocks

3] BHEL: Buy at ₹258, target ₹278, stop loss ₹250

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 278 so, holding the support level of 250 this stock can bounce toward the level 278 in the short term, so the trader can go long with a stop loss of 250 for the target price of 278.

4] Mahindra and Mahindra Financial Svcs: Buy at ₹291, target ₹310, stop loss ₹282

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 310 so, holding the support level of 282 this stock can bounce toward the 310 level in the short term, so the trader can go long with a stop loss of 282 for the target price of 310

Virat Jagad's buy or sell stocks

5] Apollo Tyres: Buy at ₹540-545, target ₹555, stop loss ₹536

Looking at Apollo Tyres Ltd on the daily chart, there's a strong buying zone between 532 and 537. Buyers have actively been getting shares, pushing the stock above this hurdle. Recent positive price movements show that buyers are in control, breaking out of a double bottom formation and suggesting the potential for more upward movement. The stock is trading above important moving averages, giving extra support to the bullish trend. The MACD indicator has a positive crossover, indicating buying interest. Today's close above the previous resistance line adds to the positive trend.

6] Union Bank of India: Buy at ₹155-158, target ₹170, stop loss ₹151

Looking at Union Bank of India on the daily chart, it has formed a pennant pattern, which typically signals a continuous bullish trend. In this pattern, the bulls are successfully trading above the resistance line. The recent bullish price action suggests that buyers are actively interested in purchasing the stock, anticipating further upward movement. On the Exponential Moving Average (EMA) front, the stock is trading above significant EMAs, indicating a positive trend. The Slow EMA (21) is in line with the trend and moving upward, further supporting the positive outlook. Checking the momentum indicator MACD, the MACD line crossing above the signal line is another positive sign, indicating a favorable trend.

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.