Day trading guide: Nifty Media index has more room on the upside

The Nifty remained choppy as it swung between 13,450-13,600 bands and fell below its prior session’s low. However, erasing early losses, eventually it ended on a flat note. Appearance of five indecisive candles in the past six days indicates pause in the upside momentum, which is also confirmed by the RSI, which is moving neutral. Inability to surpass or sustain above 13,600 could continue recent time-wise consolidation.

Bank Nifty remained beneath 31,000 and has underperformed the benchmark Nifty. Immediate band for Bank Nifty is between 30,000-31,000 zones. Bulls took a pause in public banking space and any negative follow action could attract some profit taking.

The Nifty Media index continued to trend upward; the index has more room on the upside.

Equity recommendation
Buy Godrej Industries near Rs 456

• Stop loss: Rs 452
• Target: Rs 484
• Post Monday’s pause, the stock has regained momentum on the upside. Appearance of large lower shadow infers renewed buying interest on intraday decline.

Buy Deepak Fertilisers near Rs 165

• Stop loss: Rs 160
• Target: Rs 175
• Defending prior week’s low near Rs 160, the stock rebounded, forming a bullish candle. Positive follow-up through could mean resumption of prevailing uptrend.

Derivative recommendation
Sell HDFC Life December future near Rs 655-657

• Stop loss: Rs 676
• Target: Rs 610
• Recent rally in the stock remained short lived. Appearance of another bearish candle at current juncture indicates influence of resistance at play.

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