The Nifty is trading around a long-term target of 14,450, which is a 200% extension since the inception of the index. A monthly close below the same will indicate a pause or correction in the index. On the other hand, the Bank Nifty still has room to go higher towards 33,500. Thus, we recommend to trade bank nifty on the long side rather than the Nifty.
Top trading ideas
Analyst: Sagar Doshi – Technical Analyst, Research Edelweiss Wealth Management
- CMP: Rs 710
- Target: Rs 765
- Stop loss: Rs 690
- MFSL has bounced back after taking support near the 20-day EMA. Also, this bounceback has ensured that short positions are trapped at lower levels. Short covering could bring another spurt in prices, which could test levels of Rs 750-760.
- CMP: Rs 147.50
- Target: Rs 158
- Stop loss: Rs 143
- REC has given a breakout above its previous swing high of Rs 146. Prices taking support at shorter term moving averages is also a sign of bullishness.
Bajaj Auto: BUY
- CMP: Rs 3,630
- Target: Rs 3,850
- Stop loss: Rs 3,525
- Bajaj Auto was able to absorb all the selling pressure in the past couple of trading sessions as prices bounced back after taking support at Rs 3,500 levels. Currently, the stock has given a swing breakout by closing above the previous swing high of Rs 3,630.
Torrent Power: BUY
- CMP: Rs 340
- Target: Rs 365
- Stop loss: Rs 330
- The stock was able to post a smart recovery after being battered down to its short-term moving averages. Once prices are able to cross levels of Rs 344, the stock would give a smart rally upwards.
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management
FIIs unwound 42,000 long contracts last week. However, FIIs stance on index futures is bullish as they have 45,000 net open long contracts. In stock futures, we have seen long additions by FIIs.
On option front, 14,400 strike and 14,500 strike witnessed short covering by call writers yesterday. Now, we expect 14,400 to act as huge support for any downside for this series. On the upside, 14,700 levels will act as a resistance.
The India VIX has gained 15% last week. However, yesterday VIX fell 6% . We should keep an eye for closing above 25 on India Vix for any substantial increase in volatility.
Buy Bank Nifty 32,500 CE @ 231 and Sell 32800 CE @ 104.
- Net Spread: 127
- Stop loss: 40
- Target: 250
Analyst: Munjaal Raval, Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR is approaching its critical support zone of 73.00 handle.
- Current Spot: 73.17
- Call for the day: Go long on dips around 73.00
- Target: 74.00
- Stop loss: 72.70
EUR-USD resumes its upward momentum after finding support near 1.2050.
- Current Spot: 1.21
- Call for the day: Go long on dips around 1.2070
- Target: 1.23
- Stop Loss: 1.1990
Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management
Buy MCX copper only above Rs 615
- Target: 627
- Stop loss: 607
Buy MCX gold above Rs 49200
- Target: Rs 49,700
- Stop loss: Rs 39,900
Buy MCX silver above 66800
- Target: Rs 68,500
- Stop loss: Rs 66,000