Day Trading Guide: 2 stock recommendations for Tuesday

Aditya Agarwala, YES Securities

Benchmark index Nifty50 continued to rise for the second day in a row, breaking out of a narrow flag consolidation pattern to shut shop above the 18,000 mark. A sustained trade above 18,025 will extend the up move to take the index to levels of 18,120-18,200. However, failure to breakout of the pattern and trade below 17,900 may trigger profit-booking dragging it lower to levels of 17,800-17,700. Moreover, RSI has also turned higher from 60 levels suggesting bulls' dominance at the moment.

Equity recommendation

Adani Enterprises
BUY at CMP: Rs 1753

Target: Rs 1870
Stop Loss: Rs 1680
The stock has resumed uptrend after breaking out of a narrow consolidation zone on healthy volumes confirming the bullishness. RSI has also turned upwards from the lower end of the bull zone.

P I Industries
SELL at CMP: Rs 2887
Target: Rs 2775
Stop Loss: Rs 2950
The stock is on the verge of a breakdown from trendline support suggesting weakness. Further, it has also closed below its 200-DMA which suggests extended weakness.

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