After a day of turbulent trading on Monday, the Indian stock market closed with mixed results. The Nifty 50 index ended 37 points lower at 19,694, while the BSE Sensex dropped by 139 points to close at 65,655. On the other hand, the Nifty Bank index managed to finish marginally higher at 43,584. Despite the mixed performance, the small-cap index ended positively.
Looking ahead to Tuesday, market experts believe that the Nifty 50 index has a crucial support level at 19,600. To see a fresh uptrend, the index will need to overcome a hurdle at 19,850. Nevertheless, a positive sentiment continues to prevail as the key benchmark index remains above 19,600.
For those interested in intraday trading strategies, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, recommends three stocks to consider: Mastek, Rico Auto, and Indus Towers.
In terms of the broader market outlook, Parekh states that the Nifty index is currently experiencing consolidation near the 19,700 zone. A decisive breach above or below the levels of 19,800 and 19,650 will indicate a clear directional move. Meanwhile, the Bank Nifty witnessed a flat closing, forming a Doji pattern on the daily chart. Its key support zone lies near 43,300, and a breach below this level could further weaken the trend.
To guide investors in their decision-making process, Parekh provides crucial support and resistance levels. The immediate support for the Nifty is at 19,600, while resistance is at 19,850. The Bank Nifty is expected to have a daily range of 43,200 to 43,900.
It’s important to note that the views and recommendations mentioned above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
Frequently Asked Questions (FAQs)
1. What is intraday trading?
Intraday trading, also known as day trading, involves buying and selling financial instruments, such as stocks, within the same trading day. Traders aim to take advantage of short-term price movements to generate profits.
2. How can I identify support and resistance levels?
Support and resistance levels are determined by analyzing historical price data. Support levels are price levels where buying pressure is expected to be strong, preventing the price from falling further. Resistance levels, on the other hand, are price levels where selling pressure is expected to be strong, preventing the price from rising further.
3. What is a Doji pattern?
A Doji pattern is a candlestick pattern that occurs when the opening and closing prices of an asset are very close or identical, resulting in a small or no real body. It indicates indecision in the market and suggests a potential reversal or continuation of the existing trend.