Day trading guide: 2 stock recommendations for Tuesday

Amit Trivedi, YES Securities

Following the prior week’s narrow range trade, Nifty opened flat and soon corrected till 17,269. However, it recouped early losses and eventually ended on a flat note. Appearance of another indecisive candle indicates continuation of recent timewise consolidation. Moreover, the immediate trading band of 17,200-17,450 remains intact.

IT index outperformed, gaining over a percent. Most of the IT index components ended in the green. Internal positive breadth suggests stock-specific rally within this space could continue.


Positive traction is visible in select chemical speciality stocks; positive follow-up action could continue the recent rally.

Meanwhile, Bank Nifty ended lower for the consecutive session. Intraday recoveries remained short lived. However, the immediate trading band of 36,200-37,000 remains intact.

Recommendations

Buy Nocil near Rs 288
Stop loss: Rs 278
Target: Rs 310
With sustained moves above important averages, the stock has regained momentum on upside and is on a verge to break above the hurdle zone.

Sell TVS Motors September future near Rs 547
Stop loss: Rs 556
Target: Rs 525
Recent rally found resistance near Rs 560 level. Throwback thereafter is likely to drag the stock towards Rs 525 zone.

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