Day trading guide: 2 stock recommendations for Friday

0
18
Day trading guide: 2 stock recommendations for Friday


YES Securities


Benchmark index Nifty Index posted its worst F&O expiry performance since September 2020, shedding a mammoth 5.12%. Further, the Nifty has now formed two consecutive lower highs and lower lows moving in a downward sloping channel, indicating intermediate downtrend. Moreover, the GAP support area of 14,300 was also taken out with ease though the bulls did manage to keep the index above the support of 14,300 at close. A sustained trade below this support of 14,300 in the coming trading session may extend the declines to levels of 14,000.

RSI, too, is standing at a crucial support line of 40 level, which happens to be the lower end of the bull territory. A move below 40 would mean further weakness in the Nifty index. Bulls need to make sure they push the Nifty beyond 14,500 for a short covering rally to play out.

Equity recommendation

Eris Lifesciences: BUY

CMP: Rs 605

Target: Rs 660

Stop loss: Rs 575

The stock has resumed uptrend after taking support at the breakout neckline placed at Rs 570. Moreover, on the weekly chart, it took support at an upward sloping 20-WMA, confirming bullishness. Positive DI crossing over negative DI suggests higher levels in the coming sessions.

PVR Futures: SELL

CMP: Rs 1,238

Target: Rs 1,140

Stop loss: Rs 1,300

The stock has broken down from a rising flag pattern triggering a trend reversal, favouring the bears. Further, volumes have picked up in the correction, confirming weakening uptrend.

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



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here