Indian equities came under renewed selling pressure, reversing the recent recovery as weak global cues and selling in private banks and IT stocks weighed on investor sentiment. Global markets remained cautious ahead of a busy week of corporate earnings. The Nifty slipped below the psychologically important 23,000 level, while broader market breadth remained weak, reflecting cautious investor sentiment amid earnings-related volatility and uncertain global cues.Here are 4 stock recommendations for Wednesday:
Stop loss: Rs 330 Target: Rs 385Federal Bank has broken above its falling trend line on the daily chart, supported by rising volumes. The breakout indicates improving buying interest and the possibility of further upside. The stock is trading above both the 20-day and 50-day EMAs, reflecting a positive price trend. The RSI stands at 64.43, showing strong bullish momentum.Sachin Gupta, VP - Research, Choice Equity Broking
Stop loss: Rs 398 Target: Rs 460ACME Solar has shown fresh buying interest after taking support near its rising trend line. The stock formed a hammer candlestick pattern around this zone and then broke out with strong volume support, indicating improving buying momentum. The price has also closed and sustained above the 20-day EMA, suggesting strength in the short-term trend.Sachin Gupta, VP - Research, Choice Equity Broking
Stop loss: Rs 1180 Target: Rs 1370Dr Reddy’s Laboratories has shown positive price action after breaking out of its sideways trading range on lower time frame. On the Daily chart, the stock has sustained above its previous three-session highs and closed above the 200-day EMA, indicating improving strength and a possible shift towards a bullish trend. The RSI is currently at 59.92, reflecting positive momentum with further room for an upward move.Sachin Gupta, VP - Research, Choice Equity Broking
Stop loss: Rs 175 Target: Rs 190Union Bank of India demonstrates a decisive horizontal resistance breakout on the daily chart, pushing to 180.70 (+5.25%). Trading comfortably above its key 20/50/100/200 EMAs with expanding volume and a bullish RSI crossover curling upward past signal lines to 58.44, the setup confirms accelerated upside momentum toward 190.00.Virat Jagad, Sr Technical Research Analyst, at Bonanza Portfolio