Day trading guide: 2 stock recommendations for Monday

2 stock recommendations for Monday

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Nifty OutlookAmit Trivedi, CMT, Technical Analyst – Institutional Equities, YES Securities:

Snapping a two-week-long winning streak, the bulls took a pause last week. Nifty lost 3.5 per cent from its record peak, revisiting levels of 14,900. The rally in Friday’s trade remained short-lived, finding stiff resistance near 15,150. On the flip side, selling pressure intensified as it broke below levels of the previous session’s low (15,078). Sustenance above 14,900 could attract some consolidation at the upper band, albeit a mixed trend is possible among sectoral indices.

Stocks-specific action was the theme last week as about half of Nifty50 components faced down-ticks, while stocks like ONGC, GAIL, NTPC and Power Grid rose more than 10 per cent.

Meanwhile, Bank Nifty ended lower for a fourth straight session. Follow-up action needs to be closely watched as sustenance above 36,000 is essential to keep the near-term outlook positive. Within the banking space, PSU Bank outperformed significantly last week (up 11 per cent).

The metal index is holding ground at a multi-year high zone. Positive follow-up action could attract further momentum on the upside.


Equity recommendations

Buy IDFC near Rs 52-51.5

Target: Rs 59

Stop loss: Rs 48

With a sustained move above short-term averages, the stock has witnessed a positive breakout through the recent consolidation. Positive follow-up action could continue the ongoing rally.

Buy CDSL near Rs 565-570

Target: Rs 620

Stop loss: Rs 545

Throughout the past week, the stock defended the levels of Rs 550. The appearance of a bullish candle on a comparatively higher volume warrants a positive outlook for CDSL.

Credit: Stocks-Markets-Economic Times

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