Day Trading Guide: 2 stock recommendations for Friday

Amit Trivedi, YES Securities

Following Wednesday’s narrow range trade, Nifty witnessed a gap-up start and traded in positive territory throughout the session on Thursday. Momentum on the upside picked up as it sustained above levels of 17,750 and eventually Nifty managed to settle above 17,800. Nifty resumed its northbound journey in an uncharted territory. Moreover, Nifty breadth also turned positive with 76 per cent of Nifty50 components settling in green. All the sectoral indices ended positive, suggesting broad-based buying. Shifting the range higher, levels of 17,600 could turn out as an immediate floor, while sustenance could lift the index towards the 17,910 zone.

Forming a sizable bullish candle, Bank Nifty rallied over 2 per cent. Sustenance above today’s low (i.e. 37,200) is likely to keep the near term outlook positive.

Nifty Midcap100 index is approaching all-time higher zone an sustenance could unlock further upside potential.

Recommendations

Buy Prestige near Rs 453-448
Stop loss: Rs 428
Target: Rs 500
After losing ~22 per cent from the recent peak, bulls regained momentum on upside. Multiple bullish candles ensures a shift of range on the upside.

Buy PFC near Rs 137-136
Stop loss: Rs 131
Target: Rs 148
With sustained moves above the 50-day average, the series of ascending tops and bottoms remains intact. Positive follow-up action is likely to lift the stock towards the Rs 148 zone.

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