Day trading guide: 2 stock recommendations for Wednesday
Technical Indicator RSI has turned upwards after taking support at the lower end of the bull territory suggesting that the uptrend is still intact and a move above 14,900 could take the index all the way up to its recent highs of 15,250-15,300.
By ET CONTRIBUTORS |
Agencies
YES Securities
Bulls returned with a bang on the Dalal Street on Tuesday following a dismal performance in the March expiry. Further, the Nifty50 index ended trade with gains in excess of 300 points, closing beyond the key short-term moving averages of 20-DMA & 50-DMA. However, the bulls need to push the index beyond the next crucial resistance zone of 14,870-14,900 to trigger an extended short covering rally to levels of 14,960-15,050.
On the flipside, failure to push the index beyond 14,900 may lead to profit booking, dragging the index lower to levels of 14,700-14,630. Technical Indicator RSI has turned upwards after taking support at the lower end of the bull territory suggesting that the uptrend is still intact and a move above 14,900 could take the index all the way up to its recent highs of 15,250-15,300.
Equity recommendation
LTI: BUY
CMP: Rs 4,160
Target: Rs 4,450
Stop loss: Rs 4,010
The stock has resumed its uptrend after breaking out of a falling wedge pattern on higher volumes. Further, on the weekly chart, it has constantly taken support at the short-term upward sloping moving average, i.e. 20-WMA, confirming strength in the stock. Technical indicator RSI is also confirming that the stock is trading in the bullish territory.
BRITANNIA: BUY
CMP: Rs 3,616
Stop loss: Rs 3,500
The stock has resumed an uptrend after breaking out of a consolidation phase. Further, it is on the verge of a breakout from a trendline resistance which also happens to be the 200-DMA. Moreover, the 20-DMA has made a bullish crossover with the 50-DMA, confirming strong uptrend. Technical indicator positive DI has crossed over the negative DI, suggesting higher levels.
Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.
Bulls returned with a bang on the Dalal Street on Tuesday following a dismal performance in the March expiry. Further, the Nifty50 index ended trade with gains in excess of 300 points, closing beyond the key short-term moving averages of 20-DMA & 50-DMA. However, the bulls need to push the index beyond the next crucial resistance zone of 14,870-14,900 to trigger an extended short covering rally to levels of 14,960-15,050.
On the flipside, failure to push the index beyond 14,900 may lead to profit booking, dragging the index lower to levels of 14,700-14,630. Technical Indicator RSI has turned upwards after taking support at the lower end of the bull territory suggesting that the uptrend is still intact and a move above 14,900 could take the index all the way up to its recent highs of 15,250-15,300.
Equity recommendation
LTI: BUY
CMP: Rs 4,160
Target: Rs 4,450
Stop loss: Rs 4,010
The stock has resumed its uptrend after breaking out of a falling wedge pattern on higher volumes. Further, on the weekly chart, it has constantly taken support at the short-term upward sloping moving average, i.e. 20-WMA, confirming strength in the stock. Technical indicator RSI is also confirming that the stock is trading in the bullish territory.
BRITANNIA: BUY
CMP: Rs 3,616
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Target: Rs 3,800Stop loss: Rs 3,500
The stock has resumed an uptrend after breaking out of a consolidation phase. Further, it is on the verge of a breakout from a trendline resistance which also happens to be the 200-DMA. Moreover, the 20-DMA has made a bullish crossover with the 50-DMA, confirming strong uptrend. Technical indicator positive DI has crossed over the negative DI, suggesting higher levels.
Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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