Market Trading Guide: Happiest Minds, Bajaj Finserv are among stock recommendations for Wednesday
Indian markets ended with deep cuts on Tuesday following US President Donald Trump’s hike of tariffs on steel and aluminum imports to a flat 25% "without exceptions or exemptions" increasing the risk of a multi-front trade war.The benchmark BSE Sensex lost 1,018 points or 1.3% to close at 76,293.60, while the broader Nifty 50 index closed at 23,071.80, lower by 309.80 points or 1.3%.
Commenting on the day's action, Rupak De, Senior Technical Analyst at LKP Securities said that Nifty continues to decline and is trading below the critical 21-EMA moving average. "The trend remains weak, however, after a meaningful correction, the proximity to the falling wedge support could provide a reason for recovery. On the lower end, the 22,900–22,940 zone may act as strong support, while on the higher end, resistance is placed at 23,300," De said.
Here are 2 stock recommendations for Wednesday:
Target: Rs 755
Stop Loss: Rs 679
On the daily timeframe, the stock has formed a bullish candlestick near a key demand zone, signaling a potential reversal as it bounces off this level, resembling a double-bottom formation. Furthermore, the 14-period Relative Strength Index (RSI) has crossed above its midpoint, reinforcing the bullish
sentiment. Notably, a positive divergence is evident on the RSI, indicating strengthening upward momentum. This confluence of technical factors suggests a high probability of continued upward movement, presenting an attractive opportunity for traders looking to capitalize on bullish setup.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
Target: Rs 1,670
Stop Loss: Rs 1,780
The stock concluded the session on a negative note, following a brief rally in the previous sessions. Notably, today’s closing price fell below the low of the prior candle (hanging man), signaling a potential short-term reversal. Additionally, the stock has closed below its 20-period Exponential Moving Average (EMA), accompanied by a surge in trading volume, suggesting increased selling pressure and bearish interest. On the momentum front, the Relative Strength Index (RSI) has begun to decline and is now positioned below the 14-period moving average, further reinforcing weakness and a bearish momentum bias.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
