Day Trading Guide 24th April 2024:Experts recommend 6 stocks to look out for today: Sudarshan Chemical Industries, Mahindra Holiday & Resorts India Ltd, Chambal Fertilizers & Chemicals, RVNL, Parag Milk Food Ltd, and GMR Airports Infra Ltd.
The domestic stock benchmarks Sensex and Nifty 50 climbed for the third consecutive day in the previous session. This was due to advances in shares of consumer durables, technology, and telecom companies, which occurred in the midst of a prosperous trend in global markets. In the midst of diminishing concerns over a significant escalation in the conflict in the Middle East, the volatility index dropped to within a margin of its record closing low.
With a drop of twenty percent, the fear gauge India VIX, which indicates the amount of change that the Nifty 50 index is anticipated to experience over the next thirty days, has reached a level that is close to ten. It is an indication that the market is steady and predictable when the India VIX is down. The VIX saw its most significant one-day reduction since May 23, 2019, and it finished just a few points close to its record closing low from July 28, 2023. This was the best day since May 23, 2019.
As a result of losses in shares of Reliance Industries, the Sensex finished with a small gain of 90 points, which is equivalent to 0.12 percent. This was due to the fact that gains in shares of heavyweights such as Bharti Airtel, ITC, Infosys, and SBI were offset by losses in SBI shares.
The Nifty 50 finished the day with a value of 22,368; this is a gain of 32 points or 0.14 percent. Over the course of the last three trading sessions, the two indexes each had a gain of almost 1.7%. Small and medium-sized company indexes did better than the benchmarks. When compared to the smallcap index, the BSE Midcap index increased by 0.52%, while the smallcap index increased by 1.05.
Vinod Nair, Head of Research at Geojit Financial Services, made the following statement in reference to the market: “The domestic market exhibited range-bound performance, tracking positive global cues with sustained outperformance of the broader market.” The rise in crude prices indicates that investors are reevaluating the risks, despite the fact that tensions between Iran and Israel were thought to have been escalating to a limited degree.
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According to Ajit Mishra, Senior Vice President of Technical Research at Religare Broking Ltd., who was asked about the prognosis for the Nifty today, stated, “We may see a pause in the index after the recent surge, but the tone is likely to remain positive.” He cited a dramatic decrease in the volatility index, also known as the India VIX. In the meantime, traders should continue to use a stock-specific approach and make use of declines in order to add quality names to their portfolios.
As a result of profit-taking in late transactions, the markets reversed the majority of their early gains, according to Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd. There is reason to be optimistic about the fact that the India VIX has decreased by an additional 18.90 percent, reaching 10.30 levels. This coming Thursday, futures and options contracts for the month of April will expire, and traders will want to roll over their holdings to the next expiration day. This will cause volatility to take center stage.
In terms of the technical aspects, Rupak De, Senior Technical Analyst at LKP Securities, stated that “The Nifty remained sideways throughout the session as it failed to provide any directional breakout.” As a result of the index closing higher above the key moving average, the overall trend continues to suggest a favorable direction. Because it has a rating that is lower than sixty, the Relative Strength Index (RSI) is exhibiting a bullish crossing.
A clear breakout above 22,400 may potentially set off a rally in the market. The range of 22,350-22,400 is expected to operate as a resistance zone on the top end of the market. On the lower end, support is located around 22,250; a breach below this level may cause the bullish feeling to become less strong.
Read also: Stock market timings as per Indian Standard Time.