Day trading guide: 2 stock recommendations for Friday

Amit Trivedi, YES Securities

Snapping three sessions winning streak, Nifty erased early gains and traded lower during the first half of the session. However, intraday decline remained limited as Nifty defended prior session’s low. Eventually forming an indecisive candle, the Nifty ended near 16,300. Levels of 16,100 could turn out as immediate floor, while the ideal strategy to follow remains to focus more on stock-specific action.

Bucking the ent up trend, Bank Nifty failed to sustain above the 36,000 mark. Immediate support is seen near 35,500. However, sustenance above prior month’s high (i.e. 35,985) is necessary to regain momentum on upside.

IT index is trending up for the fourth straight month. After Wednesday’s pause, it again picked up momentum on the upside; stocks-specific rally within this space is likely to continue.

After recent sideways consolidation, the metal index in today’s trade recovered from lower levels. Swift recovery is likely to attract outperformance from near-term perspective.

Recommendations

Buy

Tata Steel BSL

near Rs 98-98.5

• Stop loss: Rs 94
• Target: Rs 107

After multi-month sideways consolidation, the stock has regained positive traction. Sustenance above Rs 98 could lift the stock to revisit levels of Rs 106.

Buy REC near Rs 154

• Stop loss: Rs 150
• Target: Rs 164

Swift recovery from cluster of support zone followed by positive follow through above Rs 155 warrants positive outlook for the stock.

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