Day trading: 2 stock recommendations for Monday

Aditya AgarwalaSenior Technical Analyst, YES SecuritiesIt was a bloodbath in the Indian equity markets on the last trading day of the week as Nifty-50 Index ended with a massive cut of 4%. Further, relentless selling by the bears after a GAP down opening pushed the Nifty-50 Index below its recent support zone of 14,630 indicating weakness; though the selling halted at the 50-DMA placed at 14,440 which also happened to be the GAP support area. A sustained trade below this support of 14,440 will extend the corrections to 14,330-14,300 levels. Technical indicator RSI has also turned down from the bear upper territory of 60 confirming bearish sentiments prevailing at the moment. However, on the flip side a trade beyond 14,650 will trigger a short covering rally taking the Index back to levels of 14,800. Equity recommendationDLF FuturesSell@ CMP Rs 303Target: Rs 284Stop Loss: Rs 313The stock is on the verge of a breakout from a trendline support placed at 300 levels, a breakdown from this support on healthy volumes will trigger a sharp bear trend reversal. Further, stock has formed a lower high indicting weakness. RSI has turned down from the bear upper end of 60 suggesting a bearishness.BLUESTARCOBuy @CMP Rs 870Target: Rs 920Stop Loss: Rs 840The stock has turned upwards after breaking out of an inverted head & shoulders pattern neckline. Further, volumes have been good leading up to breakout suggesting bullishness. RSI is also favouring an extended uptrend.

from Economic Times https://ift.tt/3r3Vi5w