Day Trading Guide: 2 stock recommendations for Thursday

Amit Trivedi, YES Securities

Following Tuesday’s recovery, the Nifty50 jumped 197 points to settle at 1,7464. The Nifty opened on a gap up note and remained in positive territory throughout the session. Nifty-breadth turned positive, with 43 out of Nifty50 stocks settling in green. Shifting base higher, levels of 17,250 is likely to act as immediate support. However, as Nifty is approaching its immediate hurdle of 17,500-17,550, a follow-up needs to be closely watched out. The prudent strategy remains to focus on stocks specific action.

The internal breadth of IT, auto and metal index was positive, stocks specific rally within these indices is expected to continue.


The metal index witnessed a positive breakthrough the prior month’s peak. Throwback from the current levels should be considered as buying opportunity in selected metal stocks.

With sustained move above its important averages, the auto index has gained positive momentum.

Recommendations:
SBI Cards
Buy near Rs 860-855
Stop Loss: Rs 825
Target: Rs 920

After losing 33 per cent from the October month’s high, the stock has defended levels of 800 on a closing basis. Positive follow-up action to today’s large bullish candle could mean that the stock is due for mean reversion. Hence, buying is recommended near Rs 860 for a possible upside target of Rs 960.

NMDC
Buy near Rs 154
Stop Loss: 149
Target: Rs 165

Post few days of consolidation, the stock has regained momentum on the upside. The appearance of a bullish candle ensures a shift of range on the upside.

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