day trading guide: Day Trading Guide: 2 stock recommendations for Monday

Indian markets ended one other buying and selling session deep within the pink on Thursday as bears regained full management of the proceedings on the D-street making it three days of intense revenue reserving in a row. Additional, Nifty-50 Index ended beneath the important thing help line of 50-DMA positioned at 17,850, confirming intermediate weak spot. Nonetheless, following the relentless promoting strain previously three buying and selling classes, the index has now reached oversold territory on shorter timeframe charts, suggesting a potential pullback brief protecting rally to 17,900-17,980 ranges.

Nonetheless, this pullback could also be brief lived because the index continues to make decrease excessive and a breakdown from the important thing help degree of 17,600 being the earlier trough will set off decrease lows as effectively. Breakdown from this key help of 17,600 will intensify the promoting strain dragging the Index decrease to ranges of 17,450.

Fairness suggestions

SBI | BUY @ CMP of Rs 504
Goal: Rs 540

Cease Loss: Rs 485

The inventory has damaged out of a slender consolidation higher finish, after taking help on the Fibonacci retracement degree suggesting resumption of uptrend. Additional, RSI indicator can also be confirming the bullishness increase in current instances.

Mindtree | Promote @CMP of Rs 4,840
Goal: Rs 4,450

Cease Loss: Rs 5,035

The inventory has turned south and is on the verge of a breakdown from a trendline help, suggesting weak spot increase. Additional, RSI has turned down from beneath the 70 degree after making a damaging divergence conforming weak spot.

(The writer, Aditya Agarwala, is Senior Technical Analyst, Sure Securities. The views are his personal).