Day Trading Guide: 2 stock recommendations for Monday

Aditya Agarwala, YES Securities

Indian benchmark equity indices ended yet another week in the green on a strong note with gains of almost 4%. Further, Nifty50 is also now comfortably trading above its 200-DMA placed at the psychological level of 17,000.

However, following this 10.50% up move from the lows of 15,670 in just two weeks, Nifty50 is approaching a key hurdle at 61.8% Fibonacci retracement level which is at 17,350. Failure to sustain beyond this hurdle in the coming sessions could trigger minor profit booking, fragging the index lower to test the 200-DMA at 17,000. On the flip side, a sustained trade above 17,350 level would extend the uptrend taking the index higher to the levels of 17,600-17,800.


Moreover, RSI on the shorter time frame has reached overbought zone suggesting that a temporary pause in the uptrend cannot be ruled out.

Recommendations

JSW Steel
Buy at CMP Rs 685
Target: Rs 760
Stop loss: Rs 645

The stock has broken out from a falling channel pattern and turned upwards triggering a resumption of uptrend. Technical indicators are also favouring the same.

Titan
Buy at CMP Rs 2,700
Target: Rs 2,830
Stop loss: Rs 2,620

The stock has resumed its uptrend after breaking out of an ascending triangle pattern consolidation phase. Further, a sustained trade above Rs 2,700 will take it higher to the levels of Rs 2,830. RSI too suggests an uptrend.

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