Day trading guide: 2 stock recommendations for Thursday

Markets remained choppy today as Nifty swung between the positive and negative territory during the first half of the session. However, it gradually rallied till 15,894 before settling near day's high. Nifty breadth was mildly positive. All sectoral indices except auto and media ended the day in the green. Sustenance above 15,900 could lift the Nifty towards the 15,975-16,000 zone.

Continuing the recent outperformance, Bank Nifty rallied for the straight fourth session. Positive follow up action could lift the index towards 36,100.

Hotel, chemical and paper stocks witnessed positive traction in terms of price and volume activity; stock specific rally within this space is likely to continue.

Recommendations

Buy Lemon Tree Hotels near Rs 45

• Stop loss: Rs 43
• Target: Rs 50

After a 14% decline from the June peak, the stock rebounded from the support zone. Appearance of another bullish candle infers resumption of uptrend.

Buy DLF near Rs 294

• Stop loss: Rs 285
• Target: Rs 315

Recent decline found renewed buying interest near the 50-day EMA; recovery thereafter warrants a positive outlook for the stock.

(Amit Trivedi is CMT, Technical Analyst - Institutional Equities, YES Securities. Views are his own.)