Day trading guide for Wednesday

Edelweiss Securities

Index: Nifty
The Nifty continues to find support at 50 DMA and resistance at 20 DMA. This is a clear indecision as far as short-term trends are concerned. On the candlestick pattern as well, a Harami pattern on daily chart is also signalling an indecision and requires confirmation above Monday high or below Monday low. We expect the price to slide lower towards 14,600 once it goes below 14,810.

Top trading ideas
Analyst: Parag Shah – Technical Analyst, Research, Edelweiss Wealth Management

Chola Fin: BUY

• CMP: Rs 540.65
• Target: Rs 585
• Stop loss: Rs 524

The stock is ripe for a move to Rs 560, which is the previous swing resistance. Once this level is taken out, the stock would head higher to test levels of Rs 585-600. A strong base around Rs 520 would be the base for this rally.

MCX: BUY

• CMP: Rs 1,580.9
• Target: Rs 1,700
• Stop loss: Rs 1,515

Multi Commodity Exchange (MCX) has formed a strong base around Rs 1,500. It has broken the upper end of the channel, indicating that a firm up move towards Rs 1,700 cannot be ignored.

Godrej CP (Mar): SELL
CMP: Rs 678
Target: Rs 635
Stop loss: 706
Godrej CP has broken down after forming a classic down flag pattern. The breakout has also seen a follow through, reinforcing bearish outlook.

Voltas (Mar): SELL
CMP: Rs 1,035
Target: Rs 960
Stop loss: Rs 1,075
Voltas has found it difficult to cross the Rs 1,100-mark. It has broken its swing low of Rs 1,040, indicating a change of the trend on the downside.

F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management
Both indices continued to witness short build up in the futures segment. FIIs long exposure on index futures at lowest level since October 2020. In stock futures, FII net long contracts at 3-years low. FIIs data is pointing towards distribution at current level.

Both the indices are trading in a narrow range with huge volatility. Due to small trading range, India VIX continued to make lower lows and closed at level of 20.2. Until the VIX closes below 20, there is a higher chance of volatility getting elevated than subdued.

Actionable: Nifty Bank
Buy 35,000 straddle @ 740 with stop loss of 420 and target of 1300; Expiry: 18 March

FX Technical
Analyst: Munjaal Raval – Technical Analyst, Research, Forex & Rates, Edelweiss Wealth

USD-INR Status: USD-INR finds support near the 72.37 level where the previous bottom was placed.
Current Spot: 72.55
Call for the day: Buy on dips around 72.40
Target: 73.50
Stop Loss: 72.00

EUR-USD Status: EUR-USD is approaching its immediate support zone placed around 1.19 handle.
Current Spot: 1.1935
Call for the day: Buy on dips around 1.19
Target: 1.22
Stop Loss: 1.18

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

• Buy MCX silver above Rs 67,800; target: Rs 69,500; stop loss: Rs 67,300
• Sell MCX copper below Rs 672; target: Rs 650; stop loss: Rs 681
• Buy MCX gold above Rs 45,000; target: Rs 45,700; stop loss: Rs 44,700