Market Trading Guide: IDFC First Bank among 2 stock recommendations for Wednesday


Indian shares surrendered early gains to end sharply lower on Tuesday, dragged by banking, financial, and energy stocks. The S&P BSE Sensex closed 1.5% lower at 70,370, while the NSE Nifty 50 index closed below the 21,250 level.
“On the technical charts, Nifty formed a huge bearish engulfing candlestick. It broke the crucial support of 21,300 with a head and shoulder pattern. Now the next support lies at 21,000 coinciding with the 50-day moving average (DMA). If broken, Nifty may see a big correction as there lies no major support,” said Sheersham Gupta, director and senior technical analyst at Rupeezy.

Here are 2 stock recommendations for Wednesday:

Sell IDFC First Bank at Rs 81.9-82
Target Price: Rs 78
Stop Loss: Rs 84

On the daily time frame, IDFC First Bank Ltd has given a breakdown of the Rectangle Pattern on the downside, indicating a negative trend in the stock. Sellers have to look more aggressive to sell the security below 82 levels. Price is trading below the major EMA’s, indicating weakness in the security.

In addition to this, the MACD is showing a negative sign as its MACD line took a negative crossover, which confirms the selling interest. The volume after the breakdown is high, suggesting selling pressure in the script.(Virat Jagad, Technical Analyst, Bonanza Portfolio)

Sell Max Financial Services at Rs 865-870
Target Price: Rs 800
Stop Loss: Rs 895

Max Financial Services has established a robust support zone between 860 and 880 on its daily chart, witnessing active selling and driving the stock downward. Recent negative price movements indicate seller dominance, breaking through a rounding top formation.

Additionally, trading below key moving averages supports the notion of a bearish trend. The DMI- surpassing DMI+ affirms negative momentum, while the ADX, positioned above DMI-, underscores the robust underlying strength in the ongoing downward trend.

(Virat Jagad, Technical Analyst, Bonanza Portfolio)
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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