Day trading guide for Wednesday's market

Edelweiss Wealth Management

Index: Nifty

Move below 11430 on nifty is sign of caution for bulls. Nifty has also closed below 50 DMA for the first time since May 2020. We expect index test 10800 on the downside.

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

1) UPL: SELL
CMP: 529
TARGET: 470
STOP LOSS: 550

Stock is forming bearish RSI divergence on daily timeframe. Also stock is facing resistance at its 20 DMA on hourly time frame.

2) Amaraja Batteries: SELL
CMP: 710
TARGET: 640
STOP LOSS: 749

Stock has closed below its 20 DMA on Monday. Also stock has given close near its major support of 705. We can see some selling pressure in stock below 705/700 level.

3) Tech Mahindra: BUY
CMP: 800
TARGET: 860
STOP LOSS: 765

Stock is showing resilience in weak market along with other IT companies. Stock has a characteristic of bouncing back from its 20 DMA in its upward journey. We believe stock can climb to new highs in coming trading sessions.

4) CIPLA: BUY
CMP: 777
TARGET: 850
STOP LOSS: 745

Stock is in strong uptrend and trading near to its 52 week high. Stock is trading above all its major moving averages.

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

Option data suggests wide range for Nifty between 11000 and 11500 as these strike have maximum put and call open interest respectively. Nifty has shed 10 per cent open interest in last two trading sessions on account of profit booking. India VIX surge 10 per cent in last two trading sessions. We expect volatility to remain elevated.

Trade:
Buy Bank Nifty 21000 PE (24th Sept)
CMP: 125
TARGET: 300
STOP LOSS: 50

Forex Technical:
Madhavi Arora – Economist, Forex & Rates, Edelweiss Securities

USDINR Status: USDINR is heading towards its immediate resistance of 73.80 levels.
CURRENT SPOT: 73.59
CALL FOR THE DAY: Sell on bounce around 73.80
TARGET: 73.00
STOP LOSS: 74.10

GBPUSD Status: GBPUSD finds support near 1.27 handle where 100 and 200 DMA's are placed.
CURRENT SPOT: 1.2790
CALL FOR THE DAY: Buy on dips around 1.2750
TARGET: 1.31
STOP LOSS: 1.2650

Commodities tracker:
Ankit Narshana - Commodity Analyst, Edelweiss Professional Investor Research

Sell Mcx silver on rise at 60500: Target-56000; Stop loss-61500

Buy Mcx copper above 530: Target-540; Stop loss-520