Day Trading Guide: 2 stock ideas for upcoming session

NEW DELHI: Markets bounced back smartly on Thursday after a weak morning session. The Nifty finally gained 144.35 points or 0.9 per cent to close at 16,170.15. Broad market indices like the BSE Mid Cap index gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Zooming into the 15-minute chart, we see that the Nifty found support around the 15,900 levels and rallied sharply from there. In the process, the index moved above the 20 and 50 periods MA. This indicates strength for the near term, said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.

The daily timeframe of the Nifty indicates that the index formed a hammer pattern. This is considered a bullish reversal pattern after a correction. Traders will now need to watch if the Nifty can cross the immediate resistances of 16,263-16,415 for the bulls to gain control, the above-quoted analyst said. Supports are now at 16,006-15,903.


“We recommend a stock-specific approach and recommend buying stocks from sectors showing relative strength. While we remain open to a pullback rally in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15,735 is broken,” Gangadharan said.

Below are two recommendations from analysts for Friday:

Kotak Mahindra Bank
Buy Range : Rs 1,900 -1,920
Stop Loss: Rs 1,850
Targets: Rs 2,050/2,100
Relative strength Index at the confluence. Good rollover with a better basis. IVs are smoothening for the next series. This indicates the possibility of a directional move. OTM CE strike at max congestion Rs 2000. OTM PE strike at max concentration Rs 1800.

Analyst: Kruti Shah, Equirus

Navin Fluorine
Sell Range: Rs 3,620 – 3,660
Stop Loss: Rs 3,800
Targets: Rs 3,200/3,100

On a monthly timeframe, the stock is trading near a repetitive supply zone. It has reacted sharply from the previous supply zone forming multiple tops above Rs 3,800. Stock is garnering weakness below 3,600, suggesting opportunity create short.

Analyst: Kruti Shah, Equirus

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)