Day trading guide for Monday

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Day trading guide for Monday


Chandan Taparia
Nifty outlook: Monday, 1st February 2021

Nifty index opened gap up on Friday but could not sustain at higher zones. While it remained range bound in the initial half, the second half saw downfall and breached previous day’s low. It touched intraday low of 13,596 and closed the day with losses of around 180 points. It continues its formation of lower bottom from the last five sessions. It formed a Bearish candle on daily scale and Index may continue to remain highly volatile ahead of the Union Budget 2021. Now, till it remains below 13,800 zones, bounce could be sold and weakness may be seen towards 13500 and 13300 levels while on the upside immediate hurdle exists at 13,800 and 14,000 levels.



Stocks (spot levels) :


Scrip name:

Reco: Buy

CMP: Rs 666

Target: Rs 700

Stop Loss: Rs 650

Studies: Range breakout from rounding formation on daily scale, surpassed its previous hurdle

Scrip name:

Reco: Buy

CMP: Rs 1,603

Target: Rs 1,680

Stop Loss: Rs 1,565

Studies: Price volume momentum, higher highs – higher lows on daily and monthly scale.

Scrip name:

Reco: Sell

CMP: Rs 7,206

Target: Rs 6,850

Stop Loss: Rs 7,385

Studies: Broken its 50 DMA and rising support trend line

Scrip name:

Reco: Sell

CMP: Rs 601

Target: Rs 575

Stop Loss: Rs 615

Studies: Broken its immediate support and is forming lower lows on daily and weekly scale.


Derivatives
India VIX moved up by 4.33% from 24.29 to 25.34 levels. Surge in volatility due to selling pressure and ahead of the Budget 2021, could keep volatile swing with limited upside in the market. On option front, Maximum Put OI is at 14000 followed by 13000 strike while maximum Call OI is at 15000 followed by 14500 strike. Option data suggests a wider trading range in between 13200 to 14000/14200 zones ahead of Budget event.

Bank Nifty opened gap up and was highly volatile during the day. Wild swings could be seen in the banking stocks and it closed the day with gains of around 200 points. It formed a Bearish candle on daily scale as it closed lower than its opening but negated its formation of lower top – lower bottom of the last four sessions. Now if it manages to hold 30500 zones then bounce could be seen towards 31000 and 31250 levels while on the downside support exists at 30000 and 29700 zones.

Nifty: Monthly Budget Bear Put Spread: +13700 PE – 13200 PE (25th Feb, 2021)


Buy 1 lot of 13700 put @363

Sell 1 lot of 13200 put @176

Net premium paid: 187 points

Keep SL of net premium of 47 points: risk of 140 points

Keep target of net premium of 460 points: Reward of 273 points

Rationale:
Major trend of the Indian market remains bullish but short term trend has taken a pause and profit booking decline is seen

Ahead of such a volatile event better to hedge and protect long portfolio as index has already rallied by 96% from its March panic low of 7511 marks

Amit Trivedi, Technical Analyst – Institutional Equities, YES Securities
Nifty continued its whipsaw move, in fact throughout the January month it remained choppy; during the month it struggled near 11650 and eventually after marking record high it went through the sharp correction. In today’s trade, Nifty opened on a gap up note, however inability to cling on to higher levels erased early gains; selling pressure intensified as it broke below Thursday’s low of 13713 and corrected as much as till 13597. Nifty formed a large bearish candle ahead of the event, suggesting influence of selling pressure; however, swift two sided movement cannot be ruled out even on Monday due to the budget. It is advisable not to have any aggressive bets and wait for some stability to emerge.

Meanwhile, continuing prior session’s recovery, BankNifty outperformed ahead of the event. Sustenance above 30500 is required to make an attempt till 31200-31500 zone.

Equity recommendation

Scrip name: PTC

Reco: Buy

CMP: Rs 60

Target: Rs 67
Stop loss:
Rs 57

Congestion seems to be in a mature stage, appearance of bullish candle with sustenance above 50 days EMA warrants positive outlook for the stock; however positive follow-up action above Rs 61 is required.

Fx Technical
Kishore Narne,
MOFSL

USD/INR Status: Sideways-to-lower move looks possible in short-term!

CMP: 73.16,

Target: 72.40

Stop Loss: 73.80

Trade: Short-term trend looks bearish as long as the pair is trading below the resistance of 73.80 level. Selling on rallies is advised targeting lower support at 72.50 level.

Day trading -Jan 31-1

EURUSD Status: Short-term trend remains negative!

CMP: 1.2135

Target: 1.1980

Stop Loss: 1.2223

Trade: The pair is having short-term resistance near 1.2223 mark and a downfall towards lower support at 1.1980 looks likely. Selling on rallies is advised.

Day trading -Jan 31-2

Commodity Calls:

Amit Sajeja, MOFSL

Day trading -Jan 31-3






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