Day trading guide: 2 stock recommendations for Tuesday

Amit Trivedi, YES Securities

For the second consecutive session, Nifty failed to cling on to higher levels. After a positive start, it rallied till 16,321, but failed to surpass Friday’s peak. Erasing early gains, Nifty fell till 16,179 and eventually managed to settle in positive territory at 16,258.

On the flipside, Nifty defended its 5-day average levels, which are intact on closing since the previous week. After the prior week’s 3 per cent up move, mild consolidation is possible. Levels of 16,100 could turn out as an immediate floor.

Nifty breadth was flat to positive, while sectoral trend turned mixed in today’s trade. Metal index retreated lower. A decisive breakthrough above 5,850 is essential to regain momentum on the upside.

Bank Nifty rallied till 36,160 and outperformed the benchmark index. However, PSU Bank index continued to underperform. All the components of the PSU Bank index ended in the red. Sustenance above prior week’s high (i.e. 36,200) for Bank Nifty is necessary to gain positive traction.

Recommendations

Buy

Inox wind

@ Rs 133-132

• Stop loss: Rs 126
• Target: Rs 155

After losing 17 per cent from the recent peak, the stock has regained momentum on the upside. A series of ascending tops and bottoms is intact, and a positive follow through could lift the stock towards the Rs 151 zone.

Buy

Star Paper

@ Rs 167-165

• Stop loss: Rs 161
• Target: Rs 180

With sustained movement above the 50-day average, the recent congestion phase seems to be in a mature phase. Sustenance above Rs 165 could resume the prevailing uptrend.

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