Day trading guide for Wednesday's session

By Parag Shah

Nifty Outlook
Nifty took a breather while Nifty Bank slid after retracing 50 per cent. Frontline indices seem to have reached major targets and could take a breather before resuming their upmoves. Nifty, too, has formed a bearish harmonic pattern, suggesting a target of 32,000 if the price breaks below 34,800.
Stock recommendations

• Buy Aarti Ind at CMP for a target of Rs 1,900 with a stop loss at Rs 1,715

The stock saw a massive rally in April, rallying from levels of Rs 1,350 to test a high of Rs 1,800. It consolidated for the entire month in May, making a base at Rs 1,640. The stock has now given a breakout.

• Buy Glenmark Pharma at CMP for a target of Rs 670 with a stop loss at Rs 604

Glenmark has given a breakout with above average volumes to a rally witnessed in the first week of May. This breakout has also resulted in the formation of a higher base at Rs 600 levels.

• Buy Kolte Patil at CMP for a target of Rs 275 with a stop loss at Rs 248.50

After completing its first round of correction and making a base at Rs 200, Kolte Patil has given a strong breakout. This breakout has engulfed its previous three swing tops that were acting as a huge hurdle.

• Buy Mindtree at CMP for a target of Rs 2,600 with a stop loss at Rs 2,365

Mindtree has broken out of a classical bullish flag pattern. Volumes registered on the breakout have also been higher than average. it is trading at a fresh all-time high level, indicating a strong bullish momentum.

Derivatives
FIIs' stance on stock futures has turned net bearish. For the first time since 2018, FIIs' net position on stock futures has gone into negative territory. However, on index futures, FIIs' long exposure is at a multi-year high. In 2018, such a scenario had led to a 10 per cent correction in indices.

On the options front. the 15,600 level will act as strong support as this strike has the maximum put open interest. On the upside, 15,800 will act as resistance. The maximul pain level is 15,700.

• Buy Nifty Bank 35,100 straddle at current spread of 450 for a target of 850with a stop loss at 200; Expiry: June 10

(Parag Shah is Technical Analyst-Research at Edelweiss Wealth Management)


By Munjaal Raval

FX Technical
USD-INR status: The USD-INR pair has resumed its upward momentum after finding support near 72.35.
Current spot: 72.89
Call for the day: Buy on dips around 72.60
Target: 72.30
Stop loss: 73.70

EURUSD status: The pair continues with its upward momentum.
Current spot: 1.2170
Call for the day: Buy on dips around 1.2130
Target: 1.23
Stop loss: 1.2050

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


By Ankit Narshana

Buy silver on dips at Rs 71,200 for a target of Rs 72,000 with a stop loss at Rs 70,600
Sell copper Rs 740 for a target of Rs 710 with a stop loss at Rs 755
Buy gold on dips at Rs 48,600 for a target of Rs 49,500 with a stop loss at Rs 48,100

(Ankit Narshana is Commodity Analyst at Edelweiss Professional Investor Research)