Day trading guide: Day Trading Guide: 2 stock recommendations for Friday

Continuing the recent uptrend, Nifty witnessed a gap up start in Wednesday’s trade. However, after marking record high at 16702, it lacked the required momentum on upside and turned lacklustre during the first half. Eventually, Nifty erased early gains and entered in negative territory; selling pressure increased as it sustained below 16,600 and Nifty registered day’s low at 16,536 before settling at 16,569 – down 46 points. Nifty formed a sizable bearish candle, snapping its seven sessions winning streak. The appearance of this pattern at current levels indicates mild profit taking at higher levels and possible consolidation/minor pullback ahead towards 16,450 to digest recent gains.

Yet again, intraday rally in the Bank Nifty remained short lived finding stiff resistance near 36250. Bank Nifty resumed its under-performance as it sustained below 36000. Negative follow-up action could drag the Bank Nifty towards 35200.

Intraday recoveries in the Auto index remained short lived, the index ended in red for the straight fourth session. Stocks specific correction within Auto space is likely to continue.

Recommendations

Sell Kotak Bank August Future near Rs 1,760

Stop loss: Rs 1,785

Target: Rs 1,700

Upward rallies in the past few days found stiff resistance near 1800. Sharp throwback in today’s trade could drag the stock towards 1700.

Sell Balkrishna Ind August Future near Rs 2,290

Stop loss: Rs 2,330

Target: Rs 2,200

After a swift decline from the record peak, since past few days it is consolidating at a lower band. Negative follow-up through could attract further price correction