Day trading guide for Wednesday

Edelweiss Wealth Management

Index: Nifty
Nifty as per wave theory seems to be in wave 3 of larger degree wave 5.In range of 12,700-12,800, price will complete equality, which can bring pause to the current uptrend.


Top trading ideas
Analyst: Sagar Doshi – Technical Analyst, Research

ITC: Buy

• CMP: Rs 178.5
• Target: Rs 193
• Stop loss: Rs 170
• Stock has given a range breakout with huge candles. RSI index also gave a close above 60 for the first time since August month, which is a bullish sign. We believe the stock will see huge momentum in the coming days.

HDFC Life: Buy

• CMP: Rs 615
• Target: Rs 670
• Stop loss: Rs 585
• On a weekly timeframe, stock is on its course to make an inverse head and shoulder pattern, which is a bullish price action pattern. On daily timeframe, stock has given a range breakout. The stock is trading near its 52-week high and we believe in the coming days, it can make new highs.

LIC Housing Finance: Buy

• CMP: Rs 322
• Target: Rs 350
• Stop loss: Rs 310
• The stock has taken support on its 21 DMA on a daily timeframe. Yesterday, the stock gave a breakout with huge volumes.

DLF: Buy

• CMP: Rs 180
• Target: Rs 200
• Stop loss: Rs 172
• The stock is on the cusp of a range breakout above Rs 182. We believe once the stock starts trading above Rs 182, it can see huge momentum on the upside.

F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research
FII's stance on index futures is aggressively bullish from the last 7 trading sessions. In the last 7 trading sessions, they have added 80,000 long contracts. Now, FIIs’ net position on index futures stands at 55,000 long contracts; just 15,000 contracts shy of hitting 2020 highs. On the option front, lower strikes of 12,300-12,400 is witnessing huge put writing. However, on the upside, marginal call writing is witnessed. The India VIX rose 8% yesterday since market participants have started hedging their portfolio for any downside.

Trade:
Buy Nifty Bank 29,000 CE at 203 and Sell 29,400 CE at 108

• Net Spread: 95
• Stop Loss: 40
• Target: 350.

Forex Technical
Analyst: Munjaal Raval – Technical Analyst, Research, Forex & Rates

USDINR Status: USDINR has reversed from multiple resistance zone placed near 74.90 level

• Current Spot: 74.18
• Call for the day: Sell on bounce around 74.60
• Target: 73.50
• Stop Loss: 75.05

GBPUSD Status: GBPUSD makes its way higher after reversing from critical trend line support of 1.2850 level

• Current Spot: 1.32
• Call for the day: Buy on dips around 1.3150
• Target: 1.3450
• Stop Loss: 1.3050

Commodity
Analyst: Ankit Narshana, Commodity Analyst, Research

Buy MCX silver on dip at Rs 60,000

• Target: 63,500
• Stop loss: Rs 59,200

Buy MCX copper above Rs 535

• Target: Rs 550
• Stop loss: Rs 530