Day trading ideas: Day trading guide: 2 stock recommendations for Wednesday
Headline indices ended flat amidst rising intraday volatility. Further, the Nifty50 index is facing resistance at an upward sloping trendline formed, joining recent highs. Currently, it is placed around 15,450-15,470. Failure to breakout of this trendline resistance may trigger profit booking, dragging the index lower to the levels of 15,200. The level that was earlier a resistance should now act as a support.
Moreover, a breakdown from this support zone and a sustained trade below 15,200 could extend the correction to levels of 15,120-15,000 levels. On the flipside, a trade above 15,450-15,470 will resume the uptrend, taking the index higher to levels of 15,550.
Nifty is also approaching 61.8% Fibonacci extension level of the recent decline placed at 15,470. Therefore, bulls will have to make serious efforts to take Nifty beyond 15,470 to continue the uptrend.
Equity recommendation
Buy at Rs 1,096
Target: Rs 1,200
Stop loss: Rs 1,050
The stock has broken out of a trendline resistance on good volumes, triggering resumption of the uptrend. Further, a sustained trade beyond Rs 1,100 will trigger a breakout from a huge rounding bottom formation and Nov 2017 highs. RSI is also suggesting an up move.
Buy at Rs 99
Target: Rs 110
Stop loss: Rs 93
The stock has broken out of a channel pattern on good volumes, triggering a resumption of the uptrend. Moreover, it took the support at the trendline in the recent correction and resumed its upward journey, confirming bullishness. RSI has turned upwards closing beyond the 60-level after making a higher low, which is a sign of strength.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
