Day trading guide for Wednesday

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Day trading guide for Wednesday


Securities


Index: Nifty
The Nifty edged back above 50 DMA. Since March 2020 lows, whenever the price has closed above 50-DMA, it has never gone back below it in the next one quarter. If this is a bullish structure, a move above 15,000 will be the confirmation for the reversal and next leg of up move.

Top trading ideas

Analyst: Parag Shah – Technical Analyst, Research, Edelweiss Wealth Management

Aarti Industries: BUY

CMP: Rs 1,288

Target: Rs 1,375

Stop loss: Rs 1,240

After making a top of around Rs 1,300, Aarti Ind slipped down and took support around Rs 1,200 levels. Recent move has broken out above the swing high and a move towards Rs 1,350-1,375 seems likely.

Hindustan Petroleum: BUY

CMP: Rs 239

Target: Rs 250

Stop loss: Rs 230

has been taking support at levels of Rs 230. These levels have been held even when the broader markets were correcting sharply. The stock has broken out of its previous swing high, showing early signs of a move upwards.

Mindtree: BUY

CMP: Rs 2,006

Target: Rs 2,250

Stop loss: Rs 1945

Mindtree has been setting up nicely to form a traditional Flag pattern. The current move is the beginning of the new swing move. A move above Rs 2,045 would trigger a directional move.

AU Bank: BUY

CMP: Rs 1,245

Target: Rs 1,340

Stop loss: Rs 1,200

AU Bank formed a higher swing bottom at Rs 1,150 and inched higher. Current move has ensured that the immediate swing high is breached and the stock could head higher. A move above Rs 1,250 will trigger a fresh move on the upside.

F&O Tracker

Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management

  • Since the past few trading sessions, FIIs are covering their shorts at lower levels from both index futures and stock futures. Their net contracts tally on index futures rose from 10,000 to 35,000 long contracts. Their total tally of net long contracts are still near the lower end of the range and until net contracts move past 60,000 long contracts, FII stance can continue to be neutral to bearish.
  • On the option front, 15,000 levels continue to remain as the biggest resistance for March contract expiry as this strike has maximum call open interest. On the downside, 14,600 levels will be crucial to watch.

Actionable: Nifty Bank

Sell Bank Nifty 35,000 Call and 33,000 Put for combined premium of 160

SL: 320

Target: 5

Expiry: 25th March

FX Technical

Analyst: Munjaal Raval – Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR Status: USDINR is moving towards the critical support zone placed around 72.20.

Current Spot: 72.43

Call for the day: Buy on dips around 72.25

Target: 73.50

Stop Loss: 71.95

EUR-USD Status: EUR-USD is approaching its multiple support zone, which is placed around 1.1870 level.

Current Spot: 1.1890

Call for the day: Buy on dips around 1.1870

Target: 1.21

Stop Loss: 1.1790

Commodities

Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management

  • Sell crude at 4360, target: Rs 4,300; stop loss: Rs 4400
  • Sell MCX copper at Rs 670; target: Rs 660; stop loss: Rs 674
  • Buy MCX gold at Rs 44,850; target: Rs 45,200; stop loss: Rs 44,680





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