Day trading guide for Wednesday's market

Edelweiss Wealth Management

Index: Nifty
Nifty has seen back to back gap up openings in last few trading sessions, indicating strong upside momentum in the index. Till the time index trades above 11500 we expect it to remain in uptrend with target of 11800 and above.


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

Ramco Cement: Buy
CMP: 756
TARGET: 805
STOP LOSS: 707
Stock is trading near its March month high and is consolidating from past few sessions. RSI on monthly chart is hovering above 50 which suggest stock is in bullish momentum. We believe stock can give breakout in coming days.

Ashok Leyland: Buy
CMP: 76
TARGET: 83
STOP LOSS: 73
Stock is showing volatility contraction pattern since last two weeks. On weekly timeframe, stock is forming double inside bar pattern. A close above previous week high can lead to strong upward momentum.

Indusind Bank: Sell
CMP: 622
TARGET: 580
STOP LOSS: 720
Stock has formed inside bar pattern on daily timeframe which is again a volatility contraction pattern. Also stock is witnessing huge trading volumes since past three trading sessions. Once stock starts trading above 630, we can see some good upward momentum.

L&T (Larsen & Toubro): Sell
CMP: 892
TARGET: 830
STOP LOSS: 925
Stock is witnessing selling pressure on each rise. Currently stock is facing resistance at 21 day moving average.

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

FIIs net position on index futures stand at 33,000 long contracts, which is at 4 months high. Also, in cash market FIIs have been net buyers of stocks to the tune of Rs. 1900 crore. On option front, 11500 strike has maximum put open interest. On upside 11800 strike has maximum call open interest.

Trade:
Buy Bank Nifty 23000 CE (8th Oct) at CMP: 175
TARGET: 400
STOP LOSS: 75

Forex technical
Madhavi Arora – Economist, Forex & Rates, Edelweiss Securities

USDINR Status: USDINR is heading towards its lower band of the range which is placed around 73.10 levels.
CURRENT SPOT: 73.46
CALL FOR THE DAY: Go long on dips around 73.10
TARGET: 73.90
STOP LOSS: 72.80

EURUSD Status: EURUSD manages to sustain above 1.17 handle.
CURRENT SPOT: 1.1780
CALL FOR THE DAY: Go long on dips around 1.1740
TARGET: 1.20
STOP LOSS: 1.1650

Commodities technical
Ankit Narshana - Commodity Analyst, Edelweiss Professional Investor Research

Buy MCX Gold at 50700
TARGET: 51800
STOP LOSS: 50200

Buy MCX Silver at 61900
TARGET: 63000
STOP LOSS: 61000

Buy MCX Copper only above 515
TARGET: 530
STOP LOSS: 510