Day trading guide for Wednesday

Edelweiss Securities

Index: Nifty

The Nifty bull run continued as the dollar index continued to soften. Nifty as per wave equality has its target at 14,750. Also, we believe the Bank Nifty is to have a major contribution in this Nifty rally towards 14,750.


Top trading ideas
Analyst: Sagar Doshi, Technical Analyst, Research, Edelweiss Wealth Management

Apollo Hospital: BUY

• CMP: Rs 2,509
• Target: Rs 2,650
• Stop loss: Rs 2,375
• The stock has broken out of the trading range of Rs 2,300-2,450. Volumes on breakout are above average, adding to the confidence in the breakout.

IGL: BUY

• CMP: Rs 519
• Target: Rs 600
• Stop loss: Rs 460
• After giving a major breakout by closing above Rs 500, IGL has given a follow through to the major breakout. There could be a minor resistance at Rs 530, which was the pre-Covid swing high.

SBI: BUY

• CMP: Rs 281
• Target: Rs 305
• Stop loss: Rs 270
• SBI has formed a Mini swing bottom around Rs 250 levels and has staged a superb rally since then. It has just given a follow through to that rally, reaffirming bullishness in the stock.

Muthoot Fin: BUY

• CMP: Rs 1,292
• Target: Rs 1,370
• Stop loss: Rs 1,250
• The stock is getting ready for another round of upside as it breaks out from its previous trading range of Rs 1,150-1,250. Volumes on the breakout are above average, suggesting momentum could continue.

F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management

FIIs stance continues to be bullish on Indian markets. They have pumped in Rs 1.1 lakh crore cash in the market in the last two months. In index futures as well, FIIs stance is extremely bullish as their long exposure stands at 78%.

On option front, 14,500 strike will be resistance for any upside as this strike has maximum call open interest. On the downside, 14,000 strikes has maximum Put open interest. In case of any pullback, we expect Nifty to hold 14,000 level.

Actionable:
Buy Bank Nifty 32,000 CE @ 131 and Sell 32,400 CE @ 36.

• Net Spread: 95
• Stop loss: 20
• Target: 250
• Expiry: 7th Jan

Forex Technical
Munjaal Raval, Technical Analyst, Research, Forex & Rates, Edelweiss Wealth

USD-INR Status: USD-INR fails to sustain below critical 73.00 handle

• Current Spot: 73.18
• Call for the day: Buy on dips around 73.05
• Target: 73.70
• Stop Loss: 72.85

EUR-USD Status: EUR-USD continues trade with upward momentum

• Current Spot: 1.2250
• Call for the day: Buy on dips around 1.2220
• Target: 1.25
• Stop Loss: 1.2150

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

Buy MCX copper above 608

• Target: 625
• Stop loss: 606

Buy MCX silver above 70700

• Target: 79800
• Stop loss: 69700

Buy MCX gold above 51850

• Target: 52380
• Stop loss: 51600