Day Trading Guide: 2 stock recommendations for Wednesday – Economic Times

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By Amit Trivedi, Yes Securities

Following Monday’s recovery from lower levels, Nifty opened on a positive note, however, its inability to sustain above 18,100 dragged the index lower till 17,983. Nifty swung in a 130-point high/low range which is its lowest daily range since October 18 (except Diwali Muhrat session’s range). The appearance of a narrow range bar indicates indecisiveness, hence, sustenance below 18,100 could attract consolidation with an immediate floor seen near 17,850.

Nifty’s breadth turned flat with half of its components settling in negative territory. Sectoral trend, meanwhile, remained mixed.

Bank Nifty formed the inside bar chart pattern i.e. it traded within the prior session’s range. Under-performance of the Bank Nifty index is likely to continue as long as it trades beneath the levels of 40,000. Within the banking space, the PSU Bank index continues its recent outperformance.

Recommendations

Buy Tata Consumer products near Rs 830
Stop loss: Rs 805
Target: Rs 880

After losing 13 per cent from the record high, the bulls have regained momentum on the upside. Recent consolidation seems to be in a mature phase, hence, positive follow-up action could lift the stock towards Rs 880 zone.

Sell Tata Steel November future near Rs 1,350
Stop loss: Rs 1,380
Target: Rs 1,290

An immediate trading band is seen between Rs 1,370-1,280. Multiple hurdles are at play and the stock is likely to revisit levels of Rs 1,290.

Disclaimer: Amit Trivedi, CMT, Technical Analyst – Institutional Equities, YES SECURITIES. Views expressed are personal.

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