Day trading guide: 2 stock recommendations for Tuesday

By Amit Trivedi

After Friday’s pause, Nifty50 commenced the week on a positive note. However, the index swung between a narrow trading band of 95 points. Nifty formed ascending tops and bottoms for a straight third session, although a small indecisive candle could attract some consolidation in the upper band. The immediate range for the index is seen between 14,650 and 14,800.

After Friday’s throwback, the intraday rally in the BankNifty remained short-lived, finding resistance near 35,550. Sustenance below 35,800 could attract mild correction till 35,000.
The energy index rose for a seventh straight session. The positive internal breadth of the energy space indicates that a stock-specific rally could continue.

The pharma index gradually traded lower for a third consecutive session. The ongoing underperformance of the pharma index is likely to continue.

Recommendations

• Buy
  GE Power India
  near Rs 325 for a target price of Rs 370 with a stop loss at Rs 305

After a multi-year swift downtrend, the stock has gained some positive traction. It managed to surpass the hurdle of Rs 315. Hence, a positive follow up could lift the stock towards Rs 370.

• Sell APLLtd June futures near Rs 955 for a target of Rs 910 with a stop loss at Rs 975

With overhead resistance at play, the stock is going through a corrective phase. Recoveries in the previous week remained short-lived. The inability to sustain the current levels could drag the stock lower till Rs 910.

(Amit Trivedi, CMT, is Technical Analyst - Institutional Equities at YES Securities)