Day trading guide: 2 stock recommendations for Tuesday

By Amit Trivedi

Following two days of recovery, Nifty50 registered a record high of 15,916, but erased intraday gains as it soon entered negative territory. Defending Friday’s low, Nifty ended above the 15,800 mark eventually. The levels of its 20-day average acting as rock-solid support on closing since May 5 currently stands near 15,730. Positive follow-up action could lift the Nifty towards the 15,975 zone.

Nifty breadth turned flat, suggesting stock specific action. On the sectoral front, the PSU Bank index continued to trend up, whereas bulls regained momentum in the pharma space.

The Midcap100 index is bouncing off its support zone. Positive follow-up action is likely to attract outperformance from the midcap space. Moreover, the smallcap index is likely to resume its northbound journey in an uncharted zone.

Stock recommendations

• Buy DCAL near Rs 209-207 for a target of Rs 230 with a stop loss at Rs 198

The recent corrective movement seems to be in a mature phase. Any positive follow-up action could resume the prevailing uptrend.

With a sustained move above important averages, the stock is bouncing off its support zone.

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