Day Trading Guide: 2 stock recommendations for Friday

Nifty opened with a downward gap. However, after marking identical open and low, Nifty recouped early losses to make a day’s high at 17,292. Nifty formed a bullish meeting line candle pattern (i.e. following bearish candle, Nifty opened gapped down but closed near prior session’s close), the said pattern at the current juncture indicates continuation of recent consolidation above 17,000 mark.

Bank Nifty underperformed, losing 1.7%. Recoveries during the day remained short lived as it failed to surpass levels of 36,000.

Following a few days of consolidation, media index jumped 6%. Sustenance could unlock further upside potential. Metal index continued to trend up.

Nifty healthcare index regained momentum on upside, stock-specific rally is expected to continue.

Recommendation:
OBEROI REALTY
Buy near Rs 925-930
Stop loss: Rs 895
Target: Rs 985

During recent consolidation the stock has defended levels of Rs 900. Appearance of multiple bullish candles is likely to keep the near term structure positive.

COROMANDEL
Sell March Future near Rs 815
Stop loss: Rs 838
Target: Rs 760

Inability to sustain at higher levels dragged the stock lower. Appearance of multiple bearish candle ensures an immediate hurdle near Rs 830. On-going decline is likely to continue till Rs 760.

(The author, Amit Trivedi, CMT is Technical Analyst-Institutional Equities at YES Securities)