Titan stock price: Day Trading Guide: 2 stock recommendations for Monday


Amit Trivedi, YES Securities


Continuing the drop from the previous week, selling pressure intensified last week as Nifty50 held steady below 17,600. After Thursday’s bullish candle, the overall index failed to provide a follow-up positive; in fact, in Friday’s trade, Nifty50 opened below the previous session’s low and fell to 16986. Friday’s move took the form of a “split line” candle pattern , and said pattern at the current stage indicates a sudden change in market sentiment and the immediate hurdle is now near the 17400 level.

Bank Nifty fell for the third week in a row with a higher magnitude; moreover, it lost 14.4% from the record. The index could see a minor rally, however, the midpoint of last week’s decline (i.e. 37100) could turn out to be immediate resistance.

The auto index has significantly underperformed, losing 8.5% this week. India VIX jumped 27% to settle above the 21 level, higher price volatility is expected to continue.

Recomendations

To buy
near Rs 530-526

Stop loss: Rs 513

Target: Rs 560

The V-shaped recovery ensures a bottom of panic at the recent low. Holding above short-term averages should keep the short-term outlook positive. The ongoing rally is expected to continue up to the level of Rs 585.

To sell
December futures near Rs 2320

Stop loss: Rs 2360

Target: Rs 2240

The title is going through a corrective phase to digest its uptrend of several months. The appearance of a bearish candle, passing under the support of Rs 2350, justifies a negative outlook for the title.

(Amit Trivedi, CMT, Technical Analyst – Institutional Equities, YES Securities. The opinions are his.)


Comments are closed.