Market

Day trading guide: 2 stock recommendations for Friday

Aditya Agarwala, YES Securities

Bulls yet again failed to take the benchmark index Nifty50 beyond the upper end of the trading range, which is acting as a stiff hurdle placed at 15,900 levels. This led to an intense profit booking on the weekly expiry session. Further, Nifty ended down by 150 points nearing the lower end of the trading range at 15,600 with an intermediate support at 15,700.

RSI, too, has turned south after briefly moving above the 60-level, indicating strong profit booking at resistance levels. Going ahead, failure to hold ground above 15,700 level may extend the corrections, dragging the index lower to levels of 15,650-15,600. On the flip side, a sustained trade above 15,780-15,800 may trigger short covering rallies, taking the index back again to levels of 15,900.

Equity recommendation

IGL: BUY

  • CMP: Rs 579
  • Target: Rs 625
  • Stop loss: Rs 550

The stock has resumed an uptrend after breaking out of a bullish flag pattern on good volumes. Further, it is on the verge of breaking out into an all-time high territory. Technical indicator RSI has also entered bull territory, suggesting extended upside in the stock

Eicher Motors: BUY

  • CMP: Rs 2,729
  • Target: Rs 2,900
  • Stop loss: Rs 2,640

The stock has broken out from a sideways consolidation pattern, suggesting bullishness. Technical indicators are also in the bull territory, confirming strength in the stock.

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

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