Day trading guide for Wednesday

Index: Nifty

As long as the Nifty is above 13,200, it is likely to remain in an uptrend. However, one needs to be cautious as long legged candles are usually indecisive and can bring in short-term reversal. As per elliott wave, too, the price is trading in wave 5, which can see loss of momentum if it doesn’t go above 13,800.

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

Muthoot Finance: BUY
Infosys: BUY
LIC Housing Finance: BUY

• CMP: Rs 355
• Target: Rs 400
• Stop loss: Rs 332
• The stock has been trading in a very tight range since the last 4 trading days. Generally, this squeeze is followed by a fast move in either direction. Moving averages and momentum oscillator is bullish biased. We can see an upside breakout in the coming days.

Berger Paints: SELL

• CMP: Rs 668
• Target: Rs 600
• Stop loss: Rs 705
• The stock is forming an RSI divergence on the hourly time frame. The price is making higher highs, but the momentum indicator is forming lower lows. In the short-term timeframe, the stock can see a pullback towards its 21-day EMA.

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

FIIs heavy buying continues in the month of December. So far, they have bought stock worth Rs. 10,000 crore. In the month of November, the FII have bought stocks worth Rs 65,000 crore (highest in a single month). Generally, after such heavy buying, we can see some consolidation of gains of November month.

Nifty IV has fallen to pre-Covid levels. India VIX is trading at 18 level, lowest closing seen since 27 Feb.

FIIs are net buyers in the index futures segment and their long exposure stands at 75% in index futures segment.

Actionable:
Sell Bank Nifty 30,200 Straddle (both CE & PE) at a current spread of 550.

• Buy 29,600 PE @ 76.
• Buy 30,800 CE @ 69.
• Net spread: 405
• Stop loss: 650
• Target: 50
• Expiry: 10th Dec

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

USD-INR Status: USD-INR faces stiff resistance near 74.00 handle.

• Current Spot: 73.65
• Call for the day: Sell on bounce around 73.90
• Target: 73.00
• Stop Loss: 74.25

EUR-USD Status: EUR-USD continues with its upward momentum.

• Current Spot: 1.21
• Call for the day: Buy on dips around 1.2050
• Target: 1.2350
• Stop Loss: 1.1950

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

Buy MCX copper @ Rs 591

• Target: Rs 597
• Stop loss: Rs 588

Buy MCX gold at Rs 49,650

• Target: Rs 51,150
• Stop loss: Rs 48,950

Buy MCX silver above Rs 65,700

• Target: Rs 68,500
• Stop loss: Rs 63,500