Day trading guide: 2 stock recommendations for Monday

Nifty rallied for the straight third session on Friday. However, the high-low range was confined to 98 points – which is its lowest daily range since 15th February. The appearance of a narrow ranged candle indicates indecisiveness, hence follow-up action needs to be closely watched out as sustenance above 14,800 is essential to unlock upside potential.

Nifty Bank continued its underperformance for the consecutive sixth session. The banking index failed to close above 33,000 mark. Metals continued to shine, up ~10 per cent in the week. FMCG index snapped its 3-week losing streak. A positive follow-up action could attract some outperformance. Infrastructure index is holding ground; stock specific rally within this space could continue.

RECOMMENDATIONS
Buy Minda Corporation Ltd near Rs 107
Stop Loss: Rs 103

Target Price: Rs 117

A positive breakthrough out of the recent consolidation phase on a comparatively higher volumes warrants a positive outlook on the stock.

Sell Jubilant FoodWorks May future near Rs 2,770
Stop Loss: Rs 2,850
Target Price: 2,620

A failed recovery indicates the influence of resistance at play. A negative follow-up action could drag the stock below last month’s low.

(Amit Trivedi is CMT and Technical Analyst - Institutional Equities at YES Securities. Views are his own)