Day Trading Guide: 2 stock recommendations for Monday
In the coming week, a sustained trade beyond this immediate resistance zone of 17,350-17,400 could resume the uptrend taking the index higher to 17,600-17,800 levels.
By ET CONTRIBUTORS |
Aditya Agarwala, YES Securities
The Nifty50 Index ended trade marginally lower amidst sharp intraday volatility. Further, benchmark indices have entered a sideways consolidation phase following the recent up move from the lows. Immediate support is at the 200-DMA placed at 17,000 levels and hurdle is at 17,350-17,400 where constant supply is seen.
In the coming week, a sustained trade beyond this immediate resistance zone of 17,350-17,400 could resume the uptrend taking the index higher to 17,600-17,800 levels.
On the flip side, failure to keep its neck above the 200-DMA i.e. 17,000 would trigger profit booking dragging the index lower to 16,800. Moreover, technical indicator RSI on a shorter time frame has taken support at the 35-40 zone and turned upwards, suggesting that the uptrend is still intact.
Recommendations
Delta Corp
BUY@CMP Rs 320
Stop Loss: Rs 300
The stock has broken out from a channel consolidation pattern on higher volumes and turned upwards, triggering a resumption of the uptrend. Technical Indicators are also favouring the same.
Gujarat Alkalies
BUY @CMP: Rs 809
Target: Rs 855
The stock has resumed its uptrend after breaking out of a consolidation pattern. Further, a sustained trade above 174 will take it higher to levels of 185. RSI too suggests an up move.
The Nifty50 Index ended trade marginally lower amidst sharp intraday volatility. Further, benchmark indices have entered a sideways consolidation phase following the recent up move from the lows. Immediate support is at the 200-DMA placed at 17,000 levels and hurdle is at 17,350-17,400 where constant supply is seen.
In the coming week, a sustained trade beyond this immediate resistance zone of 17,350-17,400 could resume the uptrend taking the index higher to 17,600-17,800 levels.
On the flip side, failure to keep its neck above the 200-DMA i.e. 17,000 would trigger profit booking dragging the index lower to 16,800. Moreover, technical indicator RSI on a shorter time frame has taken support at the 35-40 zone and turned upwards, suggesting that the uptrend is still intact.
Recommendations
Delta Corp
BUY@CMP Rs 320
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Target: Rs 350Stop Loss: Rs 300
The stock has broken out from a channel consolidation pattern on higher volumes and turned upwards, triggering a resumption of the uptrend. Technical Indicators are also favouring the same.
Gujarat Alkalies
BUY @CMP: Rs 809
Target: Rs 855
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Stop Loss: Rs 785The stock has resumed its uptrend after breaking out of a consolidation pattern. Further, a sustained trade above 174 will take it higher to levels of 185. RSI too suggests an up move.
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(The author, Aditya Agarwala, is CMT, Technical Analyst - Research at YES Securities. Views are his own)(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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