stock ideas: Market Trading Guide: 2 stock ideas for Tuesday

The domestic equity market maintained its profit booking move for the second consecutive session on Monday. Nifty lost over 250 points to close below the 17,500 mark. The index has given up almost 500 points in just two trading sessions, whereas Nifty Bank has lost around 1,500 points during this period.

“For the coming session, 17,400 might be intermediate support, but a breach of the same would reinforce the bears to drag the index towards 17,200 in the coming sessions. On the upside, 17,600-17800 might be a strong supply zone,” said Mehul Kothari of Anand Rathi Shares & Stock Brokers.

Here are 2 stock recommendations which analysts suggest:

L&T

Sell near Rs 1,900

Target: Rs 1,800

Stop Loss: Rs 1,950
The stock has been in a strong uptrend from Rs 1,430 towards the Rs 1,940 mark and entered an overbought zone. The momentum oscillators on the daily scale are hinting towards a corrective move. On the daily scale, we are witnessing a bearish Engulfing candlestick pattern.

(Analyst: Mehul Kothari, Anand Rathi Shares & Stock Brokers)



Buy near Rs 3,350

Target price: Rs 3,700

Stop Loss: Rs 3,170

During the latest trading session, the stock confirmed a range breakout above the Rs 3,380 level. The price action resembles a bullish inverse head and shoulder pattern, and the breakout from the same was accompanied by heavy volumes.

(Analyst: Mehul Kothari, Anand Rathi Shares & Stock Brokers)

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)