Day Trading Guide: 2 stock recommendations for Friday

A volatile November series ended in the green as bulls defended the key support of 17,350 which happened to be the 61.8% Fibonacci retracement level. However, for the entire series, Nifty declined 1.80% as bears had an upper hand.

Heading into the December series, bulls seem to have an upper hand as the index has turned upwards from oversold levels and a sustained trade beyond 17,600 will take the index higher to 17,700-17,800 level. However, a failure to break away from the immediate hurdle of 17,600 may extend the choppy sessions, dragging the index lower to 17,350-17,200 level. Technical indicator RSI has also turned upward after forming a positive divergence suggesting a short covering should play out in the coming sessions.

Equity recommendation

Zee Entertainment | BUY @ CMP of Rs 340
Target Price: Rs 375
Stop Loss: Rs 315

The stock has broken out from a consolidation range triggering resumption of uptrend. Further, the RSI indicator has also turned higher from the 40-level i.e. lower end of the bull zone, confirming strength in the stock

Affle Ltd | Buy @CMP of Rs 1,197
Target Price: Rs 1,300
Stop Loss: Rs 1,140

The stock has broken out of the neckline of a triangle pattern on good volumes suggesting bullishness. Further, RSI has also moved above the 60 – level confirming strong upside momentum.

(The author, Aditya Agarwala, is Senior Technical Analyst, Yes Securities. The views are his own)