Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities said Nifty declined toward its 200DMA, where it found initial support and it is likely to remain within the 25,300–25,750 band, going ahead. “It may oscillate within a 450-point range amid heightened volatility. The India VIX has remained elevated, which may keep investors on edge. However, as long as 25,300 is not broken decisively, a meaningful bounce could happen. Therefore, long trades may be considered with a stop loss placed below 25,300,” De added.
Here are 2 stock recommendations for Wednesday:
Buy PNB at Rs 131.35 | Upside: 7%
Stop Loss: Rs 125
Target: Rs 141
Buy Punjab National Bank with a timeframe of 2-3 weeks. The stock price has been in a consolidation phase recently following a sharp upward move. We observe a sharp upward move from near the bottom of Rs 118 levels since last week. The stock price is attempting to move above the hurdle of Rs 131-132 levels. Volume has started to expand during the upside breakout in the stock price and RSI shows a positive indication.(Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities)
Sell OFSS at Rs 6,465 | Downside: 5%
Stop Loss: Rs 6,635
Target: Rs 6,140
The stock price is in a strong downside momentum over the last few weeks. We observe a bearish pattern like lower tops and bottoms over the period of time. Currently, it is attempting a downside breakout of a few weeks’ range at Rs 6,450 levels. Volume and RSI patterns indicate a negative bias for the stock price ahead.
(Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)