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    Day Trading Guide: 2 stock recommendations for Tuesday

    Synopsis

    Nifty50 is knocking at the upper end of a narrow trading range placed at the 18,350 level, a successful breakout from this range will resume the uptrend taking the index higher to levels of 18,500-18,600.

    Aditya Agarwala YES Securities
    Aditya Agarwala, YES Securities

    Indian benchmark index Nifty50 ended Monday's session marginally in the green led by buying in the auto and cement stocks while banks continued to drag the index lower. Further, it is knocking at the upper end of a narrow trading range placed at the 18,350 level, a successful breakout from this range will resume the uptrend taking the index higher to levels of 18,500-18,600.

    However, a sustained failure to breakout may extend the sideways trading action with key support on the downside at 18,200-18,100. While the price actions remain sideways in the past three trading sessions, the RSI indicator has started to form lower highs which suggest that the index is losing momentum and a failure to breakout from the trading range in the next few sessions could trigger profit-booking, dragging the index lower to sub 18,000 levels.

    Equity recommendation


    JSW Steel

    BUY at CMP: Rs 699
    Target: Rs 735
    Stop Loss: Rs 676
    The stock has broken out from trendline resistance and narrow consolidation phase suggesting bullishness. Further, volumes have been good in the breakout confirming strength. Technical indicators are also favoring the same.

    DLF

    BUY at CMP: Rs 424
    Target: Rs 445
    Stop Loss: Rs 410
    The stock has broken out of a narrow consolidation phase on good volumes suggesting bullishness. RSI has also turned upwards after taking support at the lower end of the bull zone.

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




    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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