Day Trading Guide: 2 stock recommendations for Monday

After taking a pause the week before last, Nifty gained some positive traction this week. However, it traded within previous bearish weekly candle, thereby forming an inside bar chart formation on weekly time frame. Nifty’s weekly range is getting narrower since the past couple of weeks, it represents consolidation at the upper band. Even on daily chart, Nifty formed a Doji candle which indicates indecisiveness near 17,900 zone.

The Bank Nifty rallied above 38,000 in the morning trade, though it failed to provide a close above that level. The Bank Nifty formed small bearish candle with upper shadow. Sustenance below 38000 could continue on-going under-performance from Bank Nifty.

Yet again, intraday rally in the Metal index found stiff resistance at higher levels; its on-going multi-month congestion phase is likely to continue.


The IT index rose for the straight session, whereas FMCG index took a pause for the consecutive week, though it defended its prior week’s low.

Recommendations

PTC India | Buy | Rs 123-121

Stop loss: Rs 114

Target: Rs 140

After a few days of consolidation, the stock regained momentum on upside. Sustenance could continue on-going up move till 145 zone.

Biocon October Future | Sell | Rs 362-364

Stop loss: Rs 369

Target: Rs 347

Recovery in the recent past remained short lived, negative follow-up action could resume downtrend.

(The author, Amit Trivedi, CMT, is Technical Analyst - Institutional Equities, YES Securities. The views are his own)