Day Trading Guide: 2 stock recommendations for Monday

Nifty rallied over 2 per cent last week, led by Tata Motors (up 30 per cent), ITC, Adani Ports and Grasim (up around 10 per cent each). Forming another bullish candle, Nifty ended in green for the straight sixth session. On Thursday, the index formed NR4 chart pattern (i.e. narrowest high/low range in the past three sessions). Appearance of multiple upward gapping action ensures a shift of base to higher levels; hence the levels of 18,000-18,050 could act as an immediate floor for Nifty. Last week, 25 out of Nifty50 components managed to beat the benchmark returns. Renewed buying interest was seen in selected auto, metal and PSU banking stocks, whereas IT stocks were volatile.

Bank Nifty traded positive throughout the session and outperformed the headline index. A sustenance could lift Bank Nifty towards 39,700-40,000 zone.

Meanwhile, breaking through the congestion phase, Nifty Metal index resumed its upward journey in uncharted territory. PSU Bank index managed to surpass its Feb’21 peak; sustenance could attract buying interest in selected public banking stocks.


Stock Recommendations for Monday

Buy Siemens near Rs 2,270-2,265
Stop loss: Rs 2,220
Target price: Rs 2,370

With a sustained move above important averages, bulls have regained momentum on the upside. A positive follow-up action could unlock further upside potential.

Buy Godrej Consumer Products near Rs 1,040-1,030
Stop loss: Rs 1,005
Target: Rs 1,110

Snapping a five-week losing streak, the stock defended levels of Rs 1,000 during the recent decline. A positive follow-up is likely to lift the stock above Rs 1,100.

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