Day Trading Guide for Friday

Kotak Securities


Clever


On the last day of the December F&O expiration series, the benchmark Nifty hit another all-time high of 14024.80. Today the index opened near yesterday’s closed level and throughout the day it hovered between 13,935 and 14,024.

Technically, after a strong bullish trend rally, the index formed a small Doji reversal formation body close to a significant resistance level. The texture of the charts clearly suggests that the short-term trend is still up, but a strong possibility of an intraday correction is not ruled out if the index is trading below 13,935.

For traders who follow the trend, 13,935 should be the sacred level to watch. By trading below the same level we can expect a quick correction up to 13,875-13,850. On the other hand, 14,025 would be the immediate hurdle for day traders; above the same we might expect a further uptrend to 14,075-14,125.

Technical choices
Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

Jubilant food | BUY

  • CMP: Rs 2,795
  • Target: Rs 2,875
  • Stop loss: Rs 2,754
  • Strong reversal formation on daily charts with modest volume activity

Britannia | BUY

  • CMP: Rs 3,580
  • Target: Rs 3,685
  • Stop loss: Rs 3,527
  • Currently, the stock is trading at significant retracement support levels and the daily charts suggest a strong chance of a further uptrend from current levels.

Dr Reddy | BUY

  • CMP: Rs 5,213
  • Target: Rs 5.363
  • Stop Loss: Rs 5,140
  • Strong formation of higher lower series on daily charts

Godrej Property: BUY

  • CMP: Rs 1,430
  • Target: Rs 1,475
  • Stop Loss: Rs 1,409
  • A strong texture of price volume breakout is expected to continue in the near future

M&O strategy

Analyst: Sahaj Agrawal, DVP-Derivatives, Research

Futures:

PURCHASE Eicher Motors Future Jan at 2530

  • Stop loss: Rs 2,470
  • Target: Rs 2,650
  • Range escape seen above 2500 on the spot.

Options:

Nifty Iron Short Condor

  • Buy 13700 PE 1 lot @ 45.90
  • Sell ​​13,800 PE 1 Lot @ 68.00
  • Sell ​​13,900 EC 1 Lot @ 181.00
  • Buy 14,000 EC 1 lot @ 122.75
  • Premium inflow (maximum profit): 80
  • Stop Loss: 140

Nifty is expected to trade in a range of 14,300 to 13,500 over the next few days as the market width weakens slightly. The number of stocks trending upward is gradually decreasing relative to the NSE200 basket, suggesting ongoing consolidation / rangebound activity. In this situation, a Short Iron Condor can be cast.

Forex technique and interest rate
Analyst: Anindya Banerjee, DVP, Currency Derivatives and Interest Rate Derivatives


USD-INR: sell january was between 73.40 / 73.60

  • Goal: 72.80
  • Stop Loss: 73.80

Product calls
Analyst: Ravindra Rao, VP- Head Commodity Research

Commodity Exchange Strategy (in Rs)
Gold (February) MCX Buy at 49900/49850
TP: 50450/50500
SL: 49600
Crude Oil (January) MCX Sell ​​at 3560/3580
TP: 3450/3420
SL: 3640
Zinc (January) MCX Sell ​​at 216.5 / 217.2
TP: 212.00 / 211.50
SL: 219.00
Soy (January) NCDEX Buy at 4580/4560
TP: 4680/4700
SL: 4520

Source