Day trading guide: 2 stock recommendations for Monday

Falling for the consecutive fifth session, Nifty made a low of 15636; however it recovered and managed to settle in positive territory. Forming small bodied candle with comparatively large lower shadow, Nifty took a support near mid-point of the large bullish candle formed on 21st June. Nifty-breadth was flat, while sectoral trends were mixed. On weekly chart, Nifty formed bearish candle which represents pause in the recent uptrend and trending band of 15600-15900 remains intact.

Bank Nifty lost ~1.6% on weekly close, however on the flip side it defended support of 34500. Stability is required above 35000 to regain momentum on upside.

Smallcap index resumed its upward trajectory at uncharted territory. Stock specific rally within this space is likely to continue.

Recommendations

Buy Trent near 895-900

• Stop loss 865
• Target 960

Forming bullish candle, the stock has witnessed consolidation break out. Positive follow-up through could mean resumption of uptrend.

Buy Crompton near 442-445

• Stop loss 430
• Target 475

Keeping series of ascending tops and bottoms intact, the stock has managed to surpass hurdle near 440. Stability at current levels could unlock further upside potential.

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