Day trading guide: Two stock recommendations for Friday

Day trading guide: Two stock recommendations for Friday

Amit Trivedi, YES Securities

The Nifty remained weak for the straight fifth session. Post a gap down opening, it made a low of 13,713. However, forming an indecisive candle, eventually it ended at 13,810, down 150 points. Nifty lost 7% from its record high, but defended its 50-day EMA, which is intact since October 2020.

Sustenance above 13,750 could attract mild recovery to digest the recent swift decline. However, sustainability at higher levels is a question mark and higher price volatility is likely to stay as we approach an important event of the Budget.

Bank Nifty lost 9.6% from the prior week’s high. However, after marking day’s low at 29,688, it recouped early losses and ended on a positive note. Sustenance above 30,000 could attract mild pullback till 30,700-31,000 zone.

On an expiry to expiry basis, Nifty lost 1.2% in the very first month of the year. It snapped its three series’ winning streak.

IT index and FMCG index underperformed, losing over 2%. Inability to sustain at current levels could attract further price correction.

Equity recommendations

Buy IOC near Rs 92

  • Stop loss: Rs 88
  • Target: Rs 100

Post 13% decline from the recent high, the stock has defended levels of Rs 90, while in today’s trade, forming a bullish candle, it reclaimed its 50-day EMA levels. Positive follow-up could lift the stock higher till Rs 100 zone.

Buy Tata Coffee near Rs 112

  • Stop loss: Rs 106
  • Target: Rs 125

The stock is relatively holding ground, sustaining above support of Rs 108-110 zone. Appearance of ascending tops and bottoms remains intact on short-term charts. Hence, positive follow-up action could attract buying interest.

(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)

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