Day trading guide: 2 stock recommendations for Monday

Amit Trivedi

After a multi-week consolidation, Nifty50 resumed its upward trajectory and rose 3 per cent in the week gone by. Momentum on the upside picked up as Nifty sustained above the 16000-mark. After Thursday’s indecisive candle, Nifty witnessed mild throwback in Friday’s trade.

Despite Nifty’s 3 per cent gain on weekly basis, only 15 out of the 50 bluechip stocks managed to beat the benchmark returns and 11 stocks delivered negative returns, representing stocks-specific action.

Going ahead, Nifty may see minor price retracement to digest the recent up move. However, with the range shifting higher, 16100 levels could turn out as the immediate floor.

Meanwhile, Bank Nifty jumped 3.5 per cent this week but still fell short in providing a close above the prior month’s high (i.e. 35985). Sustenance above the previous month’s high is required to regain momentum on the upside. Within the banking space, the PSU Banks index underperformed, settling flat for the week.

Recommendations

Buy

CCL Products

near Rs 420

• Stop loss: Rs 401
• Target: Rs 460

After losing ~20 per cent from the recent peak, the stock found renewed buying interest. The appearance of a bullish candle at the current juncture represents the immediate floor near Rs 405, while positive follow-up action could lift the stock towards Rs 460 zone.

Sell

ZEEL

August futures near Rs 198-199

• Stop loss: Rs 201.5
• Target: Rs 191

Forming a sizable bearish candle, it broke below the recent bottom. The ongoing corrective decline is likely to continue.

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