Market Trading Guide: EIH Hotels among top stock recommendations for Wednesday

Benchmark BSE Sensex declined by 362 points on Tuesday, snapping its three-day gaining streak due to selling in index major Reliance Industries, HDFC Bank and IT shares amid mixed global trends. The 30-share index declined 0.50% to settle at 72,470.30 with 20 of its components ending in the red and 10 in the green. The broader Nifty of NSE declined 92.05 points or 0.42% to 22,004.70 as 30 of its constituents dropped and 20 advanced.

"The trend remained positive for the short term as the index closed above the critical moving average on the daily chart. On the lower end, support is placed at 21,840 for the short term, below which weakness may emerge. On the higher end, resistance is visible at 22,240-22,300," said Rupak De, senior technical analyst, LKP Securities

Here are 2 stock recommendations for Wednesday:

Buy EIH LTD at Rs 440-442

Target Price: Rs 465

Stop Loss: Rs 430

EIHLTD is seen to be breaking out of a consolidation and making a bullish candlestick on the daily timeframe, which indicates strength. The supertrend indicator is bullish and the stock is seen to be sustaining above all its important EMAs. The momentum oscillator RSI (14) is at around 65, showing strength by sustaining above 50.

(Mitesh Karwa, Research Analyst, Bonanza Portfolio)

Buy KPR Mill at Rs 824-826

Target Price: Rs 867

Stop Loss: Rs 799

KPR Mill is seen to be breaking out of a bullish pattern on the daily timeframe with a bullish candlestick, which indicates strength. Momentum oscillator RSI (14) is around 64 on the daily time and is showing strength by sustaining above 50 and the stock is also trading above all the important EMAs on the daily timeframe.

(Mitesh Karwa, Research Analyst, Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)