Decoding Market Trends: A Tactical Guide to Day Trading – December 20 Insights
Written by Sanjay Kumar
News Highlights
- Nifty 50 and Sensex hit record levels on Tuesday, buoyed by global optimism and steady FII investments.
- Analysts highlight Nifty’s 21EMA support, stress 48000 for Nifty Bank, and suggest rotational buying for future gains.
- Havells, Auropharma, Mahabank, Sobha, Ibrealest, and Heritage Food are recommended for day trading.
Intraday trading on Tuesday (December 19) witnessed record highs for the Nifty 50 and Sensex, reaching 21,505.05 and 71,623.71, respectively. Despite a positive momentum, the midcap index experienced a 0.31% loss, closing at 36,186.10. Financial experts suggest continued bullish sentiments driven by FII buying and strong macro data.
Market analyst Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd., stated, “The positive momentum is likely to continue, largely driven by liquidity and a vibrant mood ahead of Christmas and New Year.”
Technical Analysis and Outlook: Nifty50 and Bank Nifty
Senior Technical Analyst Rupak De at LKP Securities notes Nifty’s support above the 21EMA, predicting ongoing strength. However, resistance is expected around 21500. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, emphasizes the importance of Nifty Bank closing above 48000 for sustained upward momentum.
Ajit Mishra, SVP – Technical Research at Religare Broking, emphasizes the need for rotational buying across sectors for the next up move.
Nifty and Bank Nifty Call Put Option Data
Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities, highlights major Call open interest at 21500 and 21600 for Nifty, and 48000 and 48200 for Bank Nifty. He also notes substantial Put open interest at 21400 and 21300 for Nifty and 47800 and 47700 for Bank Nifty.
Intraday Stock Recommendations for December 20
Stock market experts suggest the following stocks for day trading:
- Havells: Buy at ₹1372, target ₹1454, stop loss ₹1330 (Sumeet Bagadia, Executive Director at Choice Broking)
- Auropharma: Buy at ₹1032.85, target ₹1085, stop loss ₹1000 (Sumeet Bagadia, Executive Director at Choice Broking)
- Mahabank: Buy at ₹48, target ₹52, stop loss ₹46 (Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi)
- Sobha: Buy at ₹1,000, target ₹1,052, stop loss ₹990 (Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi)
- Ibrealest: Buy at ₹95.5-96.2, target ₹103, stop loss ₹92 (Mitesh Karwa, Research Analyst at Bonanza Portfolio)
- Heritage Food: Buy at ₹246-247, target ₹260, stop loss ₹238 (Mitesh Karwa, Research Analyst at Bonanza Portfolio)
Experts advise investors to carefully monitor the specified entry, target, and stop-loss levels for successful day trading.