Market Trading Guide: IDFC First Bank among 4 stock recommendations for Wednesday
Stock Ideas
Tuesday’s volatile trading session saw benchmark equity indices ending flat with Nifty holding 18,110 levels. Sensex added 37 points to close at 60,979.
Nifty Auto and Nifty IT rose the most by up to 1%, while Nifty PSU Bank and Nifty Realty logged the highest losses of more than 1% each.
“Nifty bears were active around the 18,200 level, and the index remained under pressure throughout the day.
The index is stuck in a broad range between 17,900 and 18,200, and a break on either side will lead to trending moves.
The options data shows aggressive writing at the 18,200CE strike, and the lower end support is visible at 18,000PE, where the put side has the most open interest,” said Rupak De, Senior Technical Analyst at LKP Securities.
Here are stock recommendations for Wednesday:
On a daily chart, the stock has been trading in the downward channel for the last few sessions.
However, the price has reversed from the prior demand zone with bullish engulfing candlesticks and settled just above the 20 exponential moving average, indicating bullish strengths.
At the same time, the MACD indicator has also suggested a positive crossover and divergence, confirming the long position.
After a small profit booking, the price has given a breakout of a bearish channel.
First, the price has taken support from the lower band of the channel and then it shifted just above the Ichimoku cloud and 50 EMAs indicating bullish strengths.
The MACD indicator has also suggested a positive crossover, confirming the long position.
On the daily chart, the stock has formed a Three White Soldiers pattern — a very bullish pattern. Besides, the stock is on the verge of a channel breakout on the daily chart.
A decisive move above Rs 410 may induce a strong directional up move.
On the daily chart, the stock has moved up after a prolonged sideways consolidation, suggesting a rise in optimism.
The momentum oscillator is in bullish crossover.
By:ET
