Stocks for day trading: Day trading guide: 2 stock recommendations for Wednesday
The Nifty turned choppy ahead of the RBI monetary policy event. After a positive start, the Nifty erased early gains and made a low of 14,574, eventually ending in a positive territory at 14,684. Nifty formed an inside bar chart pattern (i.e. it traded within Monday’s high/low range). Sectoral trend turned mixed and Nifty breadth was mildly positive. It represents sector or stock-specific action at play. Nifty’s recent non-trending phase is likely to continue between the band of 14,400-14,950. Ideally, the strategy remains to focus more on stock-specific action.
Bank Nifty continued to underperform as the intraday rally stalled near 33,000. Sustainability is required in the Bank Nifty for any revival.
Positive traction is seen in the pharma space. All the components of the pharma stocks ended in green.
Meanwhile, the metal index surpassed the March 18 peak. The index has more room on the upside. Hence, stock-specific rallies within this space are likely to continue.
Recommendations
Buy DLF near Rs 278
Stop loss: Rs 271
Target: Rs 295
Multiple support is seen near Rs 273-275 zone. Sustenance above for the same could attract buying interest.
Buy National Aluminum near Rs 59
Stop loss: Rs 57
Target: Rs 63
Swift recovery from the support zone ensures resumption of prevailing uptrend.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
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