Day trading guide: 2 stock recommendations for Thursday

Day trading guide: 2 stock recommendations for Thursday

Amit Trivedi, YES Securities

Nifty escalated for the straight third session, post gap up start. Throughout the day, it traded positive. Intraday decline found support near 15,000 and eventually momentum on the upside picked as it sustained move levels of 15,100. Today’s sizable bullish candle managed to surpass prior week’s high, suggesting that the shifting range was higher. 15,000 could turn out as immediate floor. Nifty breadth remained positive. Moreover, all the sectoral indices ended in the green, except the auto index.

After a few days of underperformance, bulls regained momentum in the Bank Nifty. With a close above 36,000, however, Bank Nifty is still trading below prior week’s high. Higher price volatility in the banking space is likely to stay here.

India VIX further cooled off to levels of 22. On the options front, unwinding is visible at ITM call strikes, while significant additions are visible at 15,000 and 15,100 put strikes for the current weekly expiry.

Equity recommendations

Buy Escorts near Rs 1,330

Stop loss: Rs 1,280

Target: Rs 1,430

Decline in the previous week found renewed buying interest at lower levels. The stock is bouncing off the support zone. Hence, positive follow-up action could lift it towards the Rs 1,430 zone.

Buy near Rs 970

Stop loss: Rs 935

Target: Rs 1,030

Post multi-month decline, the stock is gradually gaining positive traction. Sustenance above Rs 950 is likely to keep the near-term outlook positive.

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

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