day trading guide: Day Trading Guide: 2 stock recommendations for Wednesday

Bulls returned after a hiatus of 5 sessions taking the Nifty 50 Index higher to shut shop in green following another gap down opening at the key support level of 17,200 which happened to be a cluster previous pivot lows. Further, after successfully defending the key support area of 17,200, bulls now have to make sure that they push the Index beyond the immediate hurdle of 17,600 for an extended move on the upside to levels of 17,720-17,800.

However, failure to take the Nifty-50 Index beyond 17,600 levels may resume the choppy sessions dragging it lower to levels of 17,300-17,200. However, technical indicator RSI has turned upwards from an extremely oversold territory on a shorter time frame chart after forming a positive divergence indicating that the short covering rally may have more room on the upside in the coming sessions.

Equity recommendation

Indus Towers | buy @ CMP of Rs 294

Target Price: Rs 325

Stop Loss: Rs 275

The stock is on the verge of a breakout from a falling channel resistance line suggesting bullishness building up in the stock. Further, RSI indicator has also turned higher from the 50-level confirming strength in the stock

Spicejet | Buy @CMP of Rs 84.40

Target Price: Rs 98

Stop Loss: Rs 76

The stock has broken out of the neckline of an Ascending Triangle pattern on extremely high volumes suggesting bullishness. Further, RSI has also moved above the 60 – level confirming strong upside momentum.

(The author, Aditya Agarwala, is Senior Technical Analyst, Yes Securities. The views are his own)