Day trading guide: 2 stock recommendations for Monday

By Amit Trivedi

Headline equity index Nifty climbed to hit a fresh record high of 15,836 on Friday. After a gap-up start, the index erased early gains and eventually formed an indecisive candle. Nifty ended at 15,799, up 62 points from its previous close. Shifting the range higher, the level of 15,650 could turn out as the immediate floor, whereas a sustenance above 15,800 could unlock further upside potential in the index till 15,880-15,970 levels.

Snapping the three-week winning streak, Nifty Bank lost 0.8 per cent in the week gone by. A sustenance above 35,000 is required to regain the upside momentum.

FMCG index rallied for the third straight week and a stock specific rally within this space is likely to continue.

Recommendations:

Buy

Ceat

near Rs 1,370

• Stop loss: Rs 1,340
• Target price: Rs 1,430

For the past couple of weeks, the stock has been gradually rising. The appearance of a bullish candle indicates immediate support near Rs 1,350 and a short-term rally could continue in the counter till Rs 1,430.

Buy

Glenmark Pharma

near Rs 650

• Stop loss: Rs 630
• Target price: Rs 690

A decisive breakthrough above the recent high could shift the range on the upside.

(Amit Trivedi, CMT, Technical Analyst - Institutional Equities, Yes Securities)