Day trading guide: 2 stock recommendations for Tuesday

Aditya Agarwala, YES Securities

Bulls took charge of proceedings on Monday as benchmark index Nifty50 shut shop at a fresh all-time high, fast approaching the 17,000 level following a massive 225 points up move. This month so far Nifty has gained 7.4 per cent, outperforming its peers. However, this surge in a single trading day has taken the indices to the overbought territory on shorter time frame charts, which indicates that incremental up move from hereon could be choppy and volatile with bouts of profit booking on the way up.

Immediate hurdle is at 17,000 level and failure to sustain beyond this hurdle may trigger profit booking to levels of 16,750-16700. Previous resistance will now act as a support on the downside. However, sustained trade beyond the 17,000 level may extend the gains to 17,100. While the benchmark index could consolidate, banks could outperform as the banking index has managed to break out of a long consolidation phase, triggering a fresh up move.

Equity recommendations

Axis Bank: BUY

CMP: Rs 784

Target: Rs 822

Stop loss: Rs 760

The stock has resumed the uptrend after breaking out of a Triangle pattern resistance on good volumes. Technical indicator RSI has turned upwards after forming a positive divergence, confirming the bullishness.


CMP: Rs 680

Target: Rs 715

Stop loss: Rs 660

The stock has resumed its uptrend after making a double bottom and is now on the verge of a breakout from a W pattern. Further, volumes have been good in the recent up move, confirming the bullishness in the stock. RSI is also suggesting bullishness going forward.

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(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)



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