Day Trading Guide: 2 stock recommendations for Friday
Following the 5-day gradual upmove, Nifty50 is now approaching overbought territory on a shorter time-frame and key resistance zone of 18,300-18,350.
By ET CONTRIBUTORS |
Aditya Agarwala, YES Securities
Indian benchmark index Nifty50 ended Thursday's volatile session in the green as bulls continued to push the markets higher following a very minor intraday decline. However, following the 5-day gradual upmove, the headline index is now approaching overbought territory on a shorter time-frame and key resistance zone of 18,300-18,350. A sustained trade beyond this key hurdle can extend the upmove to levels of 18,600 which happened to be the previous all-time high.
However, failure to breakout and sustain beyond 18,350 may lead to profit-booking dragging the index lower to the levels of 181,00-18,000. Moreover, RSI on the hourly time frame has started to form a negative divergence which suggests that traders should be cautious going ahead and sharp intraday corrections and a spike in volatility cannot be ruled out.
Equity recommendation
Bajaj Finserv
BUY at CMP: Rs 18225
Target: Rs 18800
Stop Loss: Rs 17900
The stock has broken out of a narrow consolidation phase on good volumes, suggesting bullishness. RSI has also turned upwards after taking support at the lower end of the bull zone.
Adani Ports
BUY at CMP: Rs 772
Target: Rs 810
Stop Loss: Rs 750
The stock is on the verge of a breakout from trendline resistance and narrow consolidation phase, suggesting bullishness. Further, volumes have been good leading up to the breakout. Technical indicators are also favoring the same.
(The author, Aditya Agarwala is Senior Technical Analyst at YES Securities. Views are his own.)
Indian benchmark index Nifty50 ended Thursday's volatile session in the green as bulls continued to push the markets higher following a very minor intraday decline. However, following the 5-day gradual upmove, the headline index is now approaching overbought territory on a shorter time-frame and key resistance zone of 18,300-18,350. A sustained trade beyond this key hurdle can extend the upmove to levels of 18,600 which happened to be the previous all-time high.
However, failure to breakout and sustain beyond 18,350 may lead to profit-booking dragging the index lower to the levels of 181,00-18,000. Moreover, RSI on the hourly time frame has started to form a negative divergence which suggests that traders should be cautious going ahead and sharp intraday corrections and a spike in volatility cannot be ruled out.
Equity recommendation
Bajaj Finserv
BUY at CMP: Rs 18225
Target: Rs 18800
Stop Loss: Rs 17900
The stock has broken out of a narrow consolidation phase on good volumes, suggesting bullishness. RSI has also turned upwards after taking support at the lower end of the bull zone.
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Adani Ports
BUY at CMP: Rs 772
Target: Rs 810
Stop Loss: Rs 750
The stock is on the verge of a breakout from trendline resistance and narrow consolidation phase, suggesting bullishness. Further, volumes have been good leading up to the breakout. Technical indicators are also favoring the same.
(The author, Aditya Agarwala is Senior Technical Analyst at YES Securities. Views are his own.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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