Day Trading Guide: 2 stock recommendations for Thursday

Aditya Agarwala, YES Securities

The Nify50 Index finally managed to scale past the psychological level of 18,000 and closed with gains of 170 points at a new high of 18,160. Further, it is now within kissing distance of the next key resistance which is between 18,200-18,250. If bulls continue to push the Index higher beyond this resistance of 18,250 level, the uptrend could stretch to levels of 18,350-18,400 as well.

On the flip side, a failure to breakout and sustain beyond this resistance area may trigger profit booking dragging the Index lower to levels of 18,000-17,900. Moreover, on the daily time frame chart, the RSI indicator is still showing signs of a continuation of an uptrend; however, a negative divergence on lower time frame suggests that the incremental rise from here on may be choppy or witness minor corrections. Therefore, traders should remain cautious from hereon.


Equity recommendations

IndusInd Bank | Buy at CMP of Rs 1,184
Target: Rs 1,250
Stop Loss: Rs 1,140
The stock is on the verge of a breakout from an Ascending Triangle pattern consolidation suggesting bullishness building up. Technical indicator RSI has turned upwards beyond 60 after forming a positive reversal suggesting strength in the stock.

Zee Entertainment | Buy at CMP of Rs 317
Target: Rs 370
Stop Loss: Rs 290
The stock has broken out a sideways consolidation on good volumes triggering resumption of the uptrend. Further, RSI has also turned upwards after taking support at the 60 level after formation of a positive reversal pattern suggesting strength.

(The author, Aditya Agarwala, is a Senior Technical Analyst, YES Securities. The views are his own.)