Day trading guide: 2 stock recommendations for Monday

Amit Trivedi, Yes Securities

After a gap-up opening in the week gone by, Nifty's inability to close above 15,900 pulled the index back to 15,633 levels. Despite Thursday’s sharp fall, Nifty managed to settle above the prior week’s low. The appearance of a Doji candle on Friday indicated indecisiveness. Hence, further consolidation in Nifty is possible in the 15,600-15,900 zone.

Bank Nifty fell 2.7 per cent from its Thursday’s high. However, it ended in positive territory (up 0.7 per cent) on the weekly close. Immediate band for Bank Nifty is seen between 34,500-35,500 levels.


Nifty Smallcap 100 index continued its upward trajectory to uncharted territory as a stock-specific rally within this space could continue.

Recommendations:

Buy Genus Power Infrastructure at Rs 74.50-74

• Stop loss: Rs 71
• Target: Rs 81

After breaking through the previous week’s high, bulls have regained momentum. Sustenance could unlock further upside potential.

Buy Texmaco Rail and Engineering (Texrail) at Rs. 39.90

• Stop loss: Rs 38.50
• Target: Rs 45

A sustained move above the important averages has kept the near-term outlook positive. The stock has more room on the upside.

(Amit Trivedi, CMT, Technical Analyst - Institutional Equities at Yes Securities)