Day trading guide: 2 stock recommendations for Thursday – Economic Times

By Aditya Agarwala

Nifty50 ended trade lower for the third day in a row amid selling pressure in the second half of the session after the bulls failed to push the benchmark index beyond the 15,850 mark, dragging it sharply to an intraday low of 15,708.75. The index has broken down from trendline support that is formed joining the recent lows, confirming a weakening uptrend. Going ahead, if the bears pull the index below the immediate support of 15,700, selling pressure could intensify to 15,650-15,600 levels. On the flipside, if the bulls manage to push Nifty50 above 15,850, the current weakening trend will reverse, taking it back to 15,950 levels. Technical indicator RSI has also turned down below the 60 level, indicating the uptrend is losing steam.

Equity recommendations

  • Sell Exide @ CMP of Rs 183 for a target of Rs 176 with a stop loss at Rs 187

The stock has broken down from a bearish flag pattern suggesting weakness. Further, it has also closed below its 200-day moving average, which confirms the bear trend. RSI has also entered bear territory, suggesting further correction in the stock

  • Buy Escorts @ CMP of Rs 1,220 for a target of Rs 1,320 with a stop loss at Rs 1,160

The stock is on the verge of a breakout from a sideways consolidation pattern, suggesting bullishness. Further, volumes have been good in the recent bull candles, confirming an uptrend, Technical indicators are also in bull territory, confirming strength in the stock.

(Aditya Agarwala is Senior Technical Analyst at YES Securities)

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