Stock ideas for Tuesday: Day Trading Guide: 2 stock recommendations for Tuesday

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By Amit Trivedi, Yes Securities


After four consecutive days of falling, Nifty started this week on a positive note, however, its failure to maintain higher levels stalled intraday rallies. By forming an identical open and high, Nifty erased the early wins and eventually ended on a flat note. The index revisited its 20-day EMA levels, which are intact at the close since August 2021. Nifty’s breadth remained negative, with 39 of 50 stocks falling in the red. Apart from the banking and financial sector, most of the other indices suffered declines. A subsistence above 18,000 is necessary for some consolidation to develop between 18,000 and 18,300 areas. Any decisive breakthrough below 18,000 could prolong the recent decline to the 17,850 level.

Bank Nifty closed a volatile session on a positive note for the third day in a row. The index rallied to 41,830 to settle near 41,192. Technically, Bank Nifty has formed a small, long-legged candle and the trailing stocks need to be watched closely as a hold below today’s high (i.e. 41830) may attract some consolidation.


Recommendations


Larsen & Toubro 1840 Call option November | Buy almost Rs 48-50

Stop loss: Rs 24

Target:
100 rupees

The series of ascending highs and lows remain intact, while immediate support is seen near the Rs 1,760-1,750 levels. Positive follow-up action could reignite the uptrend.

October future | Sell ​​almost Rs 605

Stop loss: Rs 620

Target: Rs 570


After gaining around 28% from August lows, slight profit taking is visible on the counter. A subsistence below Rs 600 could mean that the stock is due for some price retracement.

(The author, Amit Trivedi, CMT, is Technical Analyst – Institutional Equities, YES Securities. The opinions are his)


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