Gift Nifty signals weak start; 8 day trading stocks to watch on Tuesday

Indian equity benchmarks are expected to open on a subdued note on Tuesday, August 11, as Gift Nifty traded lower in early morning deals. The Singapore-listed Nifty futures contract, which is often seen as a proxy for domestic market openings, pointed to a soft start for Dalal Street.

Traders are bracing for a cautious session after recent volatility. Global cues, including overnight moves on Wall Street and trends in Asian markets, are likely to set the tone through the day. Domestic institutional flows and sector-specific news will also influence stock-specific action.

What Gift Nifty signals

Gift Nifty, the offshore derivative of the Nifty 50 index, was quoting below its previous close, indicating that Indian indices could open in the red. The exact percentage move was not immediately clear, but early indications pointed to a gap-down start of a few points.

The muted signal comes amid mixed global sentiment. Investors are keeping a close watch on US inflation data due later this week, along with movements in crude oil prices and the dollar index, which have a direct bearing on emerging markets like India.

Eight day trading stocks to buy

For intraday traders, market analysts have shortlisted eight stocks that could offer opportunities on Tuesday. These picks are based on technical setups, volume patterns, and momentum indicators. However, traders are advised to exercise caution and use strict stop-losses, given the likely weak start.

• Stock 1: A large-cap IT name showing consolidation near support, with a potential bounce-back if broader markets hold.
• Stock 2: An auto ancillary stock with strong relative strength and breakout signals on the hourly chart.
• Stock 3: A private bank counter that has been oversold recently, with a likely pullback in play.
• Stock 4: A FMCG major with defensive appeal, often preferred during volatile sessions.
• Stock 5: A midcap metal stock with high trading volumes and a bullish candlestick pattern.
• Stock 6: A pharmaceutical company with positive news flow and above-average delivery volumes.
• Stock 7: An infrastructure firm with a short-term uptrend and good support at recent lows.
• Stock 8: A consumer durables stock with a descending triangle breakout, indicating potential upside.

These are not recommendations but technical ideas for traders with a high-risk appetite. Day trading involves significant risk, and positions should be squared off by the end of the session.

What to watch today

Investors will monitor the rupee's movement against the dollar, as well as foreign institutional investor (FII) activity. Any surprise in macroeconomic data or corporate announcements could shift market direction mid-session.

Support for Nifty is seen near recent swing lows, while resistance is placed at higher levels, according to technical analysts. A break on either side could set the intraday range.

For the rest of the week, the focus will be on US CPI numbers and any domestic policy headlines. The market's ability to hold key support levels will determine whether the corrective phase deepens or a rebound takes shape.

As the session unfolds, traders will watch whether the weak opening is bought into or selling pressure intensifies. A decisive move above or below the early range could provide the next directional clue.