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    Day trading guide: Two stock recommendations for Monday

    Synopsis

    Nifty index has reached oversold levels on a shorter time frame chart suggesting that a temporary pullback short covering rally cannot be ruled out. A sustained trade beyond 14,500 will take the index higher to the levels of 14,550-14,600.

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    Aditya Agarwala, YES Securities

    The Indian markets have turned volatile and corrective in line with the trend seen in the global markets. The Nifty index continued to decline for the second day in a row, forming back to back bearish candlesticks. Further, it is approaching crucial support at the 20-DMA placed at 14,290. So far, the 20-DMA has been acting as a stop loss line and a breakdown from this moving average support line could trigger additional corrections dragging the index lower to levels of 14,220-14,075.

    However, following this sharp decline in two trading sessions, the Nifty index has reached oversold levels on a shorter time frame chart suggesting that a temporary pullback short covering rally cannot be ruled out. A sustained trade beyond 14,500 will take the index higher to the levels of 14,550-14,600.

    Equity recommendation

    DMart: BUY
    • CMP: Rs 2,862
    • Target: Rs 3,250
    • Stop loss: Rs 2,660
    • The stock has resumed uptrend following a brief correction. Further, it took support at a trendline formed, joining recent lows Rs 2,680 level levels. A sustained trade above Rs 2,850 will extend the gains to levels of Rs 3,250. RSI, too, has turned northwards forming a positive reversal, confirming the bullishness dominant.
    Finserv: BUY
    • CMP: Rs 9,070
    • Target: Rs 9,950
    • Stop Loss: Rs 8,500
    • The Stock is on the verge of a breakout from a bullish flag pattern resistance placed at Rs 9,200. A sustained trade beyond this resistance on good volumes can trigger an up move to levels of Rs 9,950. The RSI is also favouring the bulls
    ( Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)
    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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    1 Comment on this Story

    Raja Dora40 days ago
    What about excide industries
    For future
    Read before you invest. Insights on Bajaj Finance Ltd.. Explore Now
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