Day trading guide: Stock-specific rally within the FMCG space likely to continue

Amit Trivedi, YES Securities

Snapping seven sessions winning streak, Nifty retraced back to 11,400 zone. After opening on a negative note, it traded lower throughout the session, thereby failing to provide positive follow through to Wednesday’s bullish candle. Recovering some of the day's losses, the Nifty eventually ended below the 13,500-mark . Appearance of negative close along with RSI retreating from 79 levels could attract some price consolidation/pull back towards 11,300-zone. Nifty breadth and sectoral breadth turned negative suggesting profit taking in selected stocks.

Auto index turns lower post few days’ consolidation. Negative follow-up is likely to trigger some profit taking. The FMCG Index is relatively holding ground. Stock-specific rally within this space could continue. Mixed activity within the banking space is possible.

Derivative recommendation

Sell Grasim December future near Rs 915

• Stop loss: Rs 935
• Target: Rs 894
• The stock retreated from hurdle zone. Appearance of a bearish candle with RSI scaling lower could continue to mean that stock is going through the corrective phase.

Equity recommendation

Buy DLF near Rs 216-217

• Stop loss: Rs 208
• Target: Rs 232
• Post a few days of consolidation, the stock has regained momentum on the upside. Fresh longs along with a bullish candle infers a positive outlook for the stock.

Buy EID Parry near Rs 336-338

• Stop loss: Rs 326
• Target: Rs 357
• Defending levels of Rs 327, the stock has formed a bullish candle on a comparatively higher volume. Positive follow-up could mean resumption of uptrend.

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