Day Trading Guide: 2 stock recommendations for Monday

Nifty50 ended flat for the second day in a row. The benchmark equity index has entered a range-bound trade between 17,400 on the downside and 17,560 on the upside. Further, bears are defending the key resistance level of 17,560 while bulls are defending the 89-DMA at 17,400. A sustained trade beyond 17,560 in the coming week will resume the intermediate uptrend, taking the index higher to the levels of 17,600-17,780. On the flip side, a trade below 17,400 may trigger profit booking, dragging Nifty lower to levels of 17,200 which is also the GAP area. Moreover, with the index now making a higher high and a higher low, the short-term trend is in favour of the bulls. Therefore, we are again in a buy-on-dips scenario. Intraday sharp declines to levels of 17,200 can be used as a buying opportunity. RSI has also turned upwards above 40 level, suggesting bullishness.

Stock recommendations for Monday

Buy Polycab at CMP Rs 2,471
Target price: Rs 2,640
Stop loss: Rs 2,375


Resuming an uptrend, the stock has broken out from a triangle pattern resistance. Further, volumes have been high in today’s candle confirming the bullishness. RSI has also turned upwards from the lower end of the bull zone.

Buy Kolte-patil Developers at CMP Rs 322
Target price: Rs 355
Stop loss: Rs 306

The stock has broken out of a consolidation phase on good volumes after taking support at the cluster of previous pivot lows, suggesting bullishness.

(The author, Aditya Agarwala, CMT, is Technical Analyst – Research, YES Securities. Views are his own)