Day trading guide: Nifty has immediate support at 13,250-13,200 levels

Amit Trivedi, YES Securities

Gaining for the consecutive sixth session, the Nifty ended near 13,400. During the day, it erased early gains and entered the negative territory. However, defending levels of 13300, the bulls regained momentum on the upside. In today’s trade, Nifty breadth was unimpressive as 30 out of Nifty50 constituents ended lower. It represents profit taking in select stocks. Shifting base higher, levels of 13,250-13,200 could turn out as immediate floor for Nifty.

Meanwhile, the Bank Nifty lacked required momentum on the upside as it failed to sustain above Monday’s peak. Sustenance above 30,000 is essential to make an attempt till 30,500-30,700 zones.

PSU Bank index outperformed remarkably. It rose 4.4% and is up 16% this month so far.

Derivative recommendation

Buy LIC Housing Finance December future near Rs 355

• Stop loss: Rs 345
• Target: Rs 375
• Bulls have regained momentum on the upside. Appearance of bullish candle at current juncture along with fresh longs on futures warrants positive outlook for the stock.

Equity recommendation

Buy Karnataka Bank near Rs 54

• Stop loss: Rs 51
• Target: Rs 60
• After a prolonged downtrend, in the past few weeks, the stock has gained traction on the upside. Appearance of a bullish candle after a couple of days' pause ensures more room on the upside.

Buy Birlasoft near Rs 200

• Stop loss: Rs 191
• Target: Rs 219
• Holding above short-term averages, the stock is bouncing off its support zone. Bullish candle on a comparatively higher volume indicates immediate floor near Rs 193-195, while positive follow-up action (i.e. sustenance above Rs 200) could lift the stock towards Rs 220 zone.

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