Day trading guide: 2 stock recommendations for Wednesday

By Aditya Agarwala

The Nifty50 shut shop marginally in the green on Tuesday. However, it did form a small red body candlestick led by profit booking in late trade. Further, it failed to cross and sustain beyond the recent high of 15,900, which led to this profit booking covering up the morning gap area. Going ahead, 15,900 will be a key hurdle for market participants to watch out for. A failure to break out from this resistance may trigger bouts of profit booking, dragging the index lower to 15,650-15,600 levels. On the flip side, a trade above 15,900 will extend the upward journey, taking the index higher to levels of 16,100-16,200. RSI has also turned north from the 60 level, confirming bullishness.

Equity Recommendations

• Buy Navin Fluorine International @ CMP of Rs 3,411 for a target of Rs 3,625 with a stop loss at Rs 3,300

The stock has resumed its uptrend after breaking out of a narrow consolidation phase on good volumes. RSI has also turned upwards, making higher lows and confirming bullishness. It has taken support at the cluster of its key short term moving averages, which is a sign of bullishness.

• Buy Shree Cement @CMP of Rs 29,239 for a target of Rs 30,350 with a stop loss at Rs 28,650

The stock has resumed its uptrend after breaking out of a bullish flag pattern on good volumes, confirming bullishness. Technical indicators are also in bull territory, confirming strength in the stock.

(Aditya Agarwala is Senior Technical Analyst at YES Securities. View are his own)