Day trading guide for Wednesday

Day trading guide for Wednesday


Securities


Index: Nifty
Nifty has completed its time equality pattern and ended its 10 weeks of triangle consolidation. This is perfect time equality to bring an end to the consolidation and begin a directional move in the index. Also, as per harmonic pattern, Nifty looks poised for the upside target of 15,000 until 14,200 is protected.

Top trading ideas

Analyst: Parag Shah – Technical Analyst, Research, Edelweiss Wealth Management


Bharat Forge: BUY

CMP: Rs 595.6

Target: Rs 625

Stop loss: Rs 575

Bharat Forge has made a good base around Rs 575 levels trapping the shorts at lower levels. The stock has also given a follow through to this trap breakout. A close above Rs 600 will bring further momentum in the stock.

HDFC Bank: BUY

CMP: Rs 1,438.7

Target: Rs 1,525

Stop loss: Rs 1,380

After a sharp fall in prices from levels of Rs 1,600, prices have now stabilized around Rs 1,350, forming a double bottom pattern. Recently, prices have given a swing breakout. A close above Rs 1,450 will lead to a sharp rally upwards.

SRF: BUY

CMP: Rs 6,434

Target: Rs 6,850

Stop loss: Rs 6,210

SRF has given a breakout from a classic bullish flag breakout. Prices have also broken out of a consolidation, which was between Rs 6,250 and Rs 6,000. Volumes registered on the breakout are above average.

(May): SELL

CMP: Rs 1,505

Target: Rs 1,400

Stop loss: Rs 1,555

Colpal has broken below the lower end of the trading channel it was trading in. It has also made a lower swing low, indicating a weakness in prices.

F&O Tracker

Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management

  • FIIs long exposure on index futures is at two months’ high. Their net position stands at 45,000 long contracts. The increase in long exposure near the start of the new series is a positive sign that can lead to shift in momentum.
  • Option chain indicates Nifty trading range between 14500-14800. If Nifty starts trading outside this range, we can see huge momentum due to short covering by option sellers.
  • Bank Nifty/ Nifty ratio chart is pointing towards bank nifty outperformance over Nifty.

Actionable:

Buy Bank Nifty 33,000 CE @ 608 and sell Bank Nifty 33,600 CE @ 352.
Combined spread of 256 with SL of 100 and target of 550.

Expiry: 6th May

Forex FX Technical

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


USD-INR Status: USDINR finds it difficult to sustain above 75.00 handle


Current Spot: 74.66

Call for the day: Sell on bounce around 74.90

Target: 74.00

Stop loss: 75.20

EUR-USD Status: EUR-USD manages to sustain above critical 1.20 handle creating room for further upside

Current Spot: 1.2060

Call for the day: Buy on dips around 1.2030

Target: 1.22

Stop loss: 1.1950

Commodities

Analyst: Ankit Narshana, (Commodity Analyst, Research, Edelweiss Wealth Management)

  • Buy silver above Rs 69,200; target: Rs 70,000; stop loss: Rs 68,600
  • Sell copper at Rs 765; target: Rs 752; stop loss: Rs 775
  • Sell gold below Rs 47,000; target: Rs 46,300; stop loss: Rs 47,350



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