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    Day Trading Guide: 2 stock recommendations for Friday

    Synopsis

    Going ahead, a sustained trade above 17,800 will trigger a short-covering rally taking Nifty50 higher to levels of 17,900-18,000.

    Aditya Agarwala YES Securities
    Aditya Agarwala, YES Securities

    Bears dominated D-Street for the third day in a row, as benchmark index Nifty50 saw 'Three Black Crows' formation, a bearish candlestick pattern. Nifty50 index ended the session lower by almost 200 points, as the index has declined by 3 per cent in this week itself so far. However, bulls stepped in the last hour of trade at 17,650 levels which happened to be the previous peak, which now acted as support, staging a 100-point recovery from the low point of the day. Going ahead, a sustained trade above 17,800 will trigger a short-covering rally taking the index higher to levels of 17,900-18,000.

    On the flip side, failure to sustain above 17800 may extend the corrections to levels of 17,650-17,500. Moreover, RSI has turned upwards from an extreme oversold zone on a shorter time frame chart suggesting that a short-covering rally may be witnessed in the coming trading sessions.

    Equity recommendation


    Sun Pharma Advanced Research

    BUY at CMP: Rs 321
    Target: Rs 345
    Stop Loss: Rs 308
    The stock is on the verge of a breakout from a bullish Flag pattern suggesting bullishness building up. A sustained trade above Rs 334 will take it higher to levels of Rs 345. RSI is also suggesting the same.

    Bata India

    BUY at CMP: Rs 2050
    Target: Rs 2150
    Stop Loss: Rs 1990
    The stock is on the verge of a breakout from a sideways consolidation phase suggesting bullishness building up. Further, it has taken support at the 89-DMA confirming strength.

    (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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