Market Trading Guide: City Union Bank, 1 smallcap stock may rally up to 4% in immediate term. Here’s why

Indian markets fell sharply on Tuesday led by selling pressure in bank and auto stocks as they recorded their third consecutive fall. While the short-term trend remains strong, there is a possibility of a deeper pullback toward the 21-day EMA on the daily timeframe. Commenting on the day's action, Rupak De, Senior Technical Analyst at LKP Securities said that the negative divergence on the daily RSI has added to the bearish sentiment. “If Nifty sustains below 24,700, the correction could extend further, potentially towards 24,300. However, if the index moves back above 24,700, it may signal a return to a consolidation phase,” he said.Here are 2 stock recommendations for Wednesday: Stock Ideas