Day trading guide for Wednesday

By Edelweiss Securities

Index: Nifty
The index closed at day high forming a hanging man on both the Nifty and the Bank Nifty. Such a pattern is usually a bull trap when it comes to near resistances. However, a move below 12,960 is required for confirmation of reversal, Only on a move above 13,200 should one expect resumption of uptrend towards 13,800.

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

Sun Pharma: Buy

• CMP: Rs 541
• Target: Rs 510
• Stop loss: Rs 620

The stock has given an inverse head & shoulder pattern breakout on the daily timeframe with huge volumes. Also, the momentum indicator RSI has breached 60 level after facing resistance for four months. Going forward, we expect stock to touch Rs 620-630.

HCL Technologies: Buy

• CMP: Rs 835
• Target: Rs 920
• Stop loss: Rs800

The stock is trading in a very tight range around its 21-day exponential moving average on daily timeframe. We can see the stock retesting its previous high of Rs 910-920.

PVR: Buy

• CMP: Rs 1,320
• Target: Rs 1,420
• Stop loss: Rs 1,270

The stock is at the cusp of cup & handle breakout. Recently, the stock bounced back from its 21-EMA, which is a positive sign for the stock. Momentum indicator RSI is trading above 60 on daily timeframe, indicating that the stock is witnessing a strong momentum.

Voltas: Sell

• CMP: Rs 791
• Target: Rs 725
• Stop loss: Rs 820

The stock is looking extended on the daily timeframe with momentum indicator RSI forming negative divergence with price. We can see some pullback in the stock and it can test its 21-EMA on the downside.

F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management:
Record flows by FIIs in the month of November lead the Nifty50 to an all-time high. The month of November saw an unprecedented inflow of Rs 63,000 crore by the FIIs. In the derivative segment, FIIs net position on index futures stands at 91,000 long contracts, which is the highest YTD. Going forward, we can see the market taking a pause to consolidate its gains and spend some time around the 13,000 level before starting its next leg of move.

Actionable
Nifty Iron Condor Strategy

• Sell Nifty 12,900 PE at 24 and Buy Nifty 12,700 PE at 6.5.
• Sell Nifty 13,250 CE at 27 and Buy Nifty 13,400 CE at 6.
• Net premium Credit: 40.
• Expiry: 3rd December 2020

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

USD-INR Status: USDINR is heading towards its lower band of the range

• Current Spot: 73.67
• Call for the day: Buy on dips around 73.20
• Target: 74.20
• Stop Loss: 72.90

GBP-USD Status: GBP-USD continues with its upward momentum

• Current Spot: 1.3350
• Call for the day: Buy on dips around 1.33
• Target: 1.3480
• Stop Loss: 1.32

Commodity
Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management

Buy MCX copper on dip towards Rs 565

• Target: Rs 630
• Stop loss: Rs 545

Sell MCX silver below Rs 60,500

• Target: Rs 57,000
• Stop loss: Rs 61,400

Sell MCX gold below Rs 47,800

• Target: Rs 44,000
• Stop loss: Rs 48,600