Day Trading Guide: 2 stock recommendations for Thursday

Extension of recent uptrend in crude oil prices at multi-year higher zone with dollar index sustaining above levels of 97 and sustained move in the commodities prices kept equity indices under pressure.

Following Monday’s swift recovery, however, today Nifty opened negative and made a low below 16,500 mark. Intraday recoveries remained short-lived finding stiff resistance near 16,700 zone, while eventually Nifty formed inside bar chart pattern (i.e. Nifty traded within Monday’s high/low range). Appearance of this pattern at the current juncture indicates indecisiveness, also multiple throwback suggests immediate hurdle near 16,800-16,900 zone.

Bank Nifty gapped down below 35,500. Marking low below 35,000 level, however, Bank Nifty ended above prior week’s low. Shifting range lower, levels of 36,500 should be considered as immediate resistance.


Meanwhile, smallcap index ended in green for the straight third session. Stability is likely to attract stocks specific rally within smallcap space.

Recommendations
PRICOL
Buy near Rs 112-111
Stop loss: Rs 106.5
Target: Rs 123

Post losing 28% from the prior month’s high, the stock has re-gained positive traction. Positive follow-up action is likely to lift the stock till Rs 125 zone.

LIC HOUSING FINANCE
Buy near Rs 345
Stop loss: Rs 330
Target: Rs 380

After revisiting January’s low, since the past few days the stock is holding ground above Rs 335 levels. Sustenance at current levels could mean that the stock is due for mean reversion and mild upside is possible.

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