Trade Setup For Wednesday Key Things To Know Before Opening Bell; L&T, Exide Among Intraday Picks

The Indian market is expected to see a volatile session on Thursday as weak global cues will be the biggest spoilsport. On Thursday, the Gift Nifty benchmark was in green, however, Asian stocks dipped as crude oil prices breached 1-high level stirring fear of further inflationary pressure which may keep interest rates higher and longer than expected. In the previous session, markets snapped a six-day losing streak to settle higher on strong macroeconomic indicators.

Sentiments in markets will also be triggered by the F&O expiry due on Thursday. Apart from this, investors will be positioning their bets ahead of the RBI monetary policy. Six-member monetary policy committee (MPC) is set to meet on October 4-6 to decide on key rates and policy stance. The majority are expecting another status quo in the repo rate at 6.5% from RBI. The immediate hurdle for 50-scrip Nifty is seen at 19,750.

On September 27, the Sensex ended at 66,118.69, up by 173.22 points or 0.26%. While Nifty 50 settled at 19,716.45, higher by 51.75 points or 0.26%. However, Bank Nifty sheds 35.90 points to end at 44,588.30, underperforming the 50-scrip benchmark.

L&T, ITC, Sun Pharma, Maruti Suzuki, and Reliance Industries were top gainers, while Titan, SBI, HDFC Bank, and Nestle were top laggards on Wednesday. Broadly, sectoral indices were in the green with healthcare, realty, and PSU banks recording the most buying. Nifty Midcap 100 and Nifty Smallcap 100 surged by 1% each to end at 40,640.80 and 12,675.50 respectively. India's volatility index on this day zoomed over 3.6%.

Gift Nifty:

Gift Nifty, formerly known as SGX Nifty, traded at 19,838.5 up by 14 points or 0.07%. The benchmark opened at 19,824.5 and traded in the range of 19,847.0 and 19,764.5 in early trade on Thursday.

Day Trading Guide For Today:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects a support level in the range of 19,600/19,550 for Nifty 50 on Thursday, however, resistance is factored around 19,850/19,900. While she sees Bank Nifty as having a support level of 44,300/44,250 with resistance around 45,000/45,050.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "We are eyeing 19,750 in Nifty as an immediate hurdle and its break may prompt further rebound else profit taking would resume. Amid all, the scheduled monthly expiry of derivative contracts would keep the volatility high so plan your trades accordingly."

Further, Vinod Nair, Head of Research at Geojit Financial Services highlighted that concerns about global interest rates and elevated oil prices are being balanced by several domestic factors, such as promising economic growth prospects and the potential for strong earnings, which validate the premium valuation. The FMCG and Pharma sectors outperformed, with investors adopting a defensive approach to navigate global challenges. However, persistent outflows of foreign funds and rising US bond yields are expected to keep the broader indices in bleak terrain, in the near term.

Nifty Spot Index Support Level Today:

Rupak De, Senior Technical analyst at LKP Securities said, the Nifty showed a strong recovery during the day, finding support at the 50EMA. The day concluded with the formation of a bullish engulfing pattern. On the upper side, resistance is situated at 19,750. A clear breakout is necessary to anticipate a substantial rally in the index. A decisive move beyond 19,750 could potentially push the index towards 19,900. On the downside, support is established at 19,600.

Also, Shrikant Chouhan, Head of Research (Retail), Kotak Securities said, that Nifty on the daily charts has formed a bullish reversal formation near 50 days SMA (Simple Moving Average) which indicates a strong possibility of a fresh uptrend rally from the current levels. For the traders now, 19630 would act as a key support level. Above this, the market could continue the positive momentum till 19800-19825. On the flip side, below 19630 uptrend would be vulnerable.

Bank Nifty Index Support Level Today:

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, the Bank NIFTY bulls displayed resilience by defending the key support level at 44,200, which coincided with the rising trendline support. However, the index is currently trading below its 20-day moving average (20DMA) positioned at 45,000. A decisive break above this level could trigger significant short-covering. Currently, the BankNIFTY is trading within a broad range of 44,200 to 45,000. A clear break on either side of this range will likely lead to trending moves. Nevertheless, within this range, the overall sentiment remains bullish, suggesting that a "buy on the dip" approach may be favourable.

Intraday Stocks Picks:

Parekh recommended buying in three stocks during Thursday's trade. These are:

1. Larsen & Toubro: Buy at Rs 2965 with a stop loss of Rs 2920 for a target price of Rs 3180.

2. Exide Industries: Buy at Rs 2561 with a stop loss of Rs 2500 for a target price of Rs 2700.

3. VIP Industries: Buy at Rs 662.80 with a stop loss of Rs 650 for a target price of Rs 700.