Day trading guide: 2 stock recommendations for Tuesday

Amit Trivedi, YES Securities

After a prior week’s throwback from the record high, Nifty turned volatile in today’s trade. Post gap up start, Nifty erased early gains and entered in the negative territory to register a low of 16,396. However, on sustenance above 16,400, it again reclaimed levels of 16,500 mark and eventually ended at 16496, up 46 points.

Appearance of identical open and high after recent decline indicates immediate hurdle near 16,600-16,700 zone, while inability to hold current levels could drag the index to revisit levels of 16,400-16,300.

Rally in the Bank Nifty remained short lived, finding stiff resistance near 35,400. Sustenance above 35,500 is required to gain some positive traction.

Media index is down 12 per cent this month so far; negative follow through could continue on-going downtrend. Bulls took a pause after six days’ up move. Decline in this space should be considered as a buying opportunity.

On sustenance below prior month’s low, auto index continued its downtrend. Stock-specific correction within auto space is likely to continue.


Adani Ports August future near Rs 675

Stop loss: Rs 692

Target: Rs 625

Rally in the prior week remained short lived. Appearance of bearish candle with break below Rs 680 could drag the stock towards Rs 625.

UPL September Put option near 18-17

Stop loss: 9

Target: 38

Selling pressure intensified as it broke below 750. Strategy remains to sell on rise as inability to build on gains could unlock further downside potential.

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

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