day trading guide: Day Trading Guide: 2 stock recommendations for Monday

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The benchmark Nifty-50 concluded another trading session slightly in the green amid rising intraday volatility. For the week, the index closed above the 17,800 mark, up 1.52%. However, in the future 17,920 will act as a key obstacle and failure to break out of this 17,900-17,920 resistance area could trigger a profit reservation, driving the index to levels of 17,780 to 17,700. Additionally, a close below 17,700 could extend the reserve of earnings, pushing the index down to 17,600 levels.

However, a sustained trade above 17,920 over the coming week will extend the ongoing uptrend to 18,080 levels. Additionally, for the coming week traders should be careful of a negative divergence which accumulates in the price of the RSI relative to the price of the VIX and which has crossed the 16 level as these are the signs of an intermediate formation at the top.

Equity recommendation

M&M | Buy at CMP of Rs 779

Target: Rs 820


Stop the loss: Rs 760

The stock is about to emerge from a phase of close consolidation, suggesting a buildup of optimism. In addition, prices increase on good volumes. The RSI technical indicator rallied after taking support at the 40 level, suggesting strength in the stock.

Ambuja Cement Futures | Sell ​​@CMP for Rs | Sell ​​@CMP of Rs 412

Target
: Rs 390

Stop the loss: Rs 425

The stock is on the verge of collapsing from trendline support suggesting an accumulation of weakness. Additionally, it turned south from previous resistance of Rs 425 and a bearish cross between key moving averages over shorter time frames confirming the bearish trend. RSI is also heading for bear territory.

(The author, Aditya Agarwala is Senior Technical Analyst, YES Securities. Opinions are his)


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