Day Trading Guide: 2 stock recommendations for Wednesday

Indian equity markets shrugged off weakness in the global markets taking the headline index Nifty50 higher following a GAP down opening on Monday. Further, it ended trade in the green with gains of 135 points taking the Index beyond 16,750 levels approaching its 200-DMA resistance 16,910.

A sustained trade above the 200-DMA could extend the current uptrend to levels of 17,070-17,200. However, failure to cross the hurdle of 16,850-16,910 could resume the choppy sessions 16,700-16,600. Moreover, RSI has also formed a positive reversal which suggests that a bottom formation may be in process.

Recommendations:
SBI CARD
Buy@CMP Rs 785
Target: Rs 825
Stop Loss: Rs 765

Stock has taken support at the lower end of the consolidation phase and turned upwards suggesting a possible short covering rally in the coming sessions. Technical Indicators are also favouring the same.

MARICO
Buy@CMP Rs 515
Target: Rs 545
Stop Loss: Rs 500

Stock has taken support at the 61.8% Fibonacci retracement level and turned upwards breaking above its 200-DMA suggesting bullishness. Further, volumes have also been encouraging in the recent upmoves confirming the same.

(The author, Aditya Agarwala, CMT, is Technical Analyst–Research at YES Securities)