Day trading guide: Trim buy positions for Nifty near 14,000-14,050 zone

Amit Trivedi, YES Securities

Gaining for the straight fifth session, the Nifty registered a record high of 13,968. However, in today’s trade, mild profit taking was visible as erasing early gains, the Nifty entered in the negative territory. Eventually, the Nifty ended at 13,936, up 63 points. Despite positive close, the Nifty breadth turned flat as about half of the Nifty constituents ended in the red on account of profit taking. Immediate floor for Nifty is now seen near 13,700, while it is advisable to trim some trading buy positions near the 14,000-14,050 zone.

Gaining for the straight fifth session, the Bank Nifty surpassed 31,000. Sustenance above 31,000 could lift the Bank Nifty towards the 31,600-31,800 zone.

Sectoral trend turned mixed with the Bank Nifty leading the way. The bulls took a pause in metal and media space.

Equity recommendations

Buy ITC near Rs 210

• Stop loss: Rs 201
• Target: Rs 228
• Post prior week's swift decline, the stock has gradually gained positive traction. Sustenance above Rs 210 could resume prevailing uptrend.

Buy Marico near Rs 405

• Stop loss: Rs 390
• Target: Rs 435
• With sustained move above important averages, the stock has defended levels of Rs 395 on a closing basis. The stock is likely to resume its northbound journey towards the uncharted zone.

Buy LIC Housing Finance near Rs 360

• Stop loss: Rs 350
• Target: Rs 380
• Renewed buying interest emerged near 50-day EMA. With immediate support near Rs 355-350, the stock is likely to revisit recent peak of Rs 391.

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