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

YES Securities

Post Friday’s swift up move, the Nifty turned choppy in today’s trade. Nifty opened on a positive note above the 15,200-mark. However, it failed to sustain above the 15,250 zone. Eventually forming an indecisive candle, Nifty ended below the 15,200 mark. The Nifty breadth turned flat with half of Nifty constituents settling in the red. Going back in history, during Feb-March 2021, the Nifty failed to sustain above the 15,250 zone on multiple occasions. Hence, the price near 15,250 needs to be closely watched out.

Bank Nifty stood up strongly in Friday’s trade. However, today it lacked the required momentum on the upside. Appearance of Doji candle near 61.8% retracement level of the prior Feb-Apr down move indicates indecisiveness near 35,000 level. However, within the banking space, PSU banks continued to outperform.

Since the past few weeks, the energy index is moving up consistently; stock-specific rally within this space is likely to continue.

Recommendations

Buy NTPC near Rs 112

Stop loss: Rs 107

Target: Rs 122

Recent congestion phase seems to be in a mature phase. Sustained move above important averages could attract buyers’ interest.

Sell May future near Rs 1,280

Stop loss: Rs 1,310

Target: Rs 1,220

Multiple hurdles are at play; sustenance below Rs 1,300 could attract mild correction towards the Rs 1,220 zone.

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

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