Day trading guide: 2 stock recommendations for Tuesday

YES Securities

After witnessing a huge volatility in the previous week, the Nifty commenced this week on a negative note. Erasing Friday’s partial gains, the Nifty failed to surpass 14,800. On the downside, it made a day’s low below 14,600 mark, eventually forming an inside bar and Doji chart pattern.

Nifty largely swung between the levels of 14,600-14,750. It also took the form of NR4 (i.e. narrowest high/low range when compared with prior three sessions’ daily range). Post 6.4% decline from the recent high, mild consolidation/recovery in the Nifty is possible. However, levels of 14,950 will continue to act as hurdle zones. Ideal strategy would be to maintain focus on stocks/sector-specific action.


FMCG index witnessed a consolidation breakout in the previous week. Positive follow-up thereafter unlocks further potential on the upside.

Meanwhile, the Bank Nifty underperformed in today’s trade. Sustenance above 33,300 is essential for any revival to set in.

Recommendations
Buy Colgate-Palmolive (India) near Rs 1,570-1,575
Stop loss: Rs 1,530
Target: Rs 1,650
The recent decline found support near its six-month support levels. Swift recovery thereafter could mean that stock is in a mature stage and positive follow-up action could resume prevailing the uptrend.

Buy ITC near Rs 225-224
Stop loss: Rs 214
Target: Rs 245
Post ~16% decline from the Feb peak, bulls regained momentum on the upside. Sustenance above Rs 220 could lift the stock till the Rs 245 zone.

Amit Trivedi, CMT, Technical Analyst - Institutional Equities, YES Securities. Views are his own.