Day trading guide: Nifty needs to sustain 13,100 level to continue up move

Amit Trivedi, YES Securities

Continuing a gradual uptrend, the Nifty printed another record high at 13,280. Intraday decline found support near 13,150, thereby defending Thursday's low eventually forming a bullish candle. With a close near day's high, Nifty rose 125 points to settle above 13,250. Shifting base higher, the immediate floor is now seen near 13,100 and sustenance above the same is required to continue ongoing journey at uncharted zone.

Bank Nifty managed to surpass levels of the 30,000-mark. Positive follow-up action could lift the Bank Nifty towards the 30,500-30700 zone. PSU Bank index found renewed buying interest during intraday decline; while Private Bank index gained some positive traction.

Equity recommendation

Buy Sterlite Technologies near Rs 164-163

• Stop loss: Rs 156
• Target: Rs 180
• Post multi-month congestion breakout, the stock has eventually gained momentum on the upside. Appearance of a bullish candle on a higher volume warrants positive outlook for the stock.

Buy United Spirits near Rs 575-579

• Stop loss: Rs 558
• Target: Rs 615
• Swift recovery ensures shift of range on the upside. Short-term momentum indicators have turned up in collaboration with rising price moves, thereby confirming the momentum on the upside.

Stock option recommendation

Buy ITC 200 strike December call near 5.70

• Stop loss: 2.5
• Target: 14
• The stock is on the verge of breaking out of its recent consolidation phase. Unwinding at ITM and ATM call strikes and significant additions at 200 put suggests a shift in trading range on the upside.

(Amit Trivedi is CMT, Technical Analyst - Institutional Equities, YES Securities. Views are his own. )