Day Trading Guide: 2 stock recommendations for Friday

Nifty swung between Monday’s high/low range for the consecutive session. Post gap-up start, soon it entered in negative territory and fell below prior session’s low. Another throwback indicates influence of resistance at play, hence levels of 16800-16900 will continue to act as immediate hurdle. Given the fact, India VIX sustains above levels of 25, markets will continue to remain volatile.

Meanwhile, Bank Nifty continued its under-performance, down for the consecutive fourth week. Negative follow-up action could unlock further downside potential till 34,500.

Sectoral trends turned mixed. IT index gained some positive traction, while metal index continued to trend up.

The right thing to do is to wait for some reversal signals/stability to start appearing before trying to harvest near the lows. Stocks specific correction is expected to continue.

Recommendations:
ICICI PRU
Sell March future between Rs 470 and Rs 472
Stop loss: Rs 484
Target: Rs 445

Series of descending tops and bottoms remains intact. Recovery remained short lived, hence negative follow-up action could extend recent decline.

VOLTAS
Sell March future near Rs 1,210
Stop loss: Rs 1,245
Target: Rs 1,140

Throwback from the hurdle zone and appearance of multiple bearish candles is likely to keep the near term outlook negative.

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