Day trading guide: 2 stock recommendations for Friday
Indian benchmark index Nifty50 ended the weekly F&O expiry session in the red with a cut of 124 points amidst volatility, seeing profit booking for the second straight session. However, it did manage to hold on to the cluster of key support areas between 14,900-14,850, which happens to be the GAP area, 50 per cent Fibonacci retracement level and the trendline support.
Going ahead, if bulls manage to take the index back above the 15,000-mark, the uptrend could resume, taking the index to levels of 15,100-15,240. However, on the flipside, a trade below 14,850 may trigger extended corrections to levels of 14,800-14,750.
A bullish crossover between 20-DMA and 50-DMA suggests that the trend has turned bullish and the index could breakout into an all-time high territory soon. RSI is also approaching its support zone on lower time frame charts, indicating a short covering rally in the coming sessions.
Ipca Lab: BUY
- CMP: Rs 2,208
- Target: Rs 2,335
- Stop loss: Rs 2,130
The stock is on the verge of a breakout, forming a cup & handle neckline placed at Rs 2,230. A successful breakout on healthy volumes will trigger an up move to levels of Rs 2,335. Further, it took support at the 50 per cent Fibonacci retracement level and turned upwards, confirming bullishness. Moreover, RSI has formed a positive reversal as well, suggesting higher levels.
City Union Bank: BUY
- CMP: Rs 172
- Target: Rs 182
- Stop loss: Rs 167
The stock has turned upwards after taking support at the lower end of the channel support, suggesting bullishness. Further, on the daily chart, it has taken support at the key short-term moving averages, confirming bullishness.
(Aditya Agarwala is Senior Technical Analyst at YES Securities. Views are his own.)
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