day trading guide: Day Trading Guide: 2 stock recommendations for Monday

Nifty50 finished flat for the second day in a row. The benchmark stock index entered a range between 17,400 on the downside and 17,560 on the upside. Additionally, bears defend the key resistance level of 17,560 while bulls defend the 89-DMA at 17,400. Sustained trade beyond 17,560 in the coming week will resume the intermediate uptrend, carrying the index higher at the 17,600 to 17,780 levels. On the other hand, a trade below 17,400 can trigger a profit taking, pulling Nifty towards the 17,200 levels, which is also the GAP area . Also, with the index now hitting a higher high and a higher low, the short term trend is in favor of the bulls. Therefore, we are again in a buy-on-decline scenario. Strong intraday declines to 17,200 levels can be used as a buying opportunity. The RSI also rose above the 40 level, suggesting an uptrend.

Stock recommendations for Monday

Buy Polycab at CMP Rs 2,471
Target price: Rs 2,640

Stop loss: Rs 2,375

Resuming an uptrend, the title exited a triangle resistance. Additionally, volumes were high in today’s candle, confirming the uptrend. The RSI also turned higher from the lower end of the bullish zone.

Buy from Kolte-patil developers at CMP Rs 322
Target price: Rs 355

Stop loss: Rs 306

The stock exited a phase of consolidation on good volumes after taking support at the group of previous low pivots, suggesting an uptrend.

(The author, Aditya Agarwala, CMT, is a Technical Analyst – Research, YES Securities. His views are hers)

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