Day trading guide: 4 stock recommendations for Friday

0
40
Day trading guide: 4 stock recommendations for Friday


Kotak Securities

Nifty

Hammer candlestick formation followed by inside body candles clearly indicate indecisiveness between the bulls and the bear. However, the medium-term texture of the market is still on the bullish side, but the daily and the intraday charts suggest that the uptrend may take a temporary pause near 14,620. If the index sustains above the same continuation of uptrend, it will continue to head towards 14,700 -14,775. On the flip side, trading below 14,500 could trigger quick short-term correction up to 14,350-13,250.

Tech Picks
Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

HDFC Bank: BUY

  • CMP: Rs 1,468.75
  • Target: Rs 1,515
  • Stop loss: Rs 1,440
  • The stock has given a breakout from rectangle formation on the daily and weekly charts.

Tata Steel: BUY

  • CMP: Rs 706.35
  • Target: Rs 727
  • Stop loss: Rs 695
  • Strong breakout continuation formation likely to continue in the near term.

Muthoot Finance: BUY

  • CMP: Rs 1,251
  • Target: Rs 1,290
  • Stop loss: Rs 1,232
  • The stock is trading above short-term averages with strong higher bottom formation on the daily charts.

Siemens: BUY

  • CMP: Rs 1,651.15
  • Target: Rs 1,700
  • Stop loss: Rs 1,620
  • Strong Bar Reversal formation along with positive Parabolic SAR series suggest uptrend expected to continue in the near term.

F&O Strategy
Analyst: Sahaj Agrawal, DVP-Derivatives, Research

Futures: Buy ITC Future Jan at 214

  • Stop loss: Rs 208
  • Target: Rs 230
  • Range breakout seen above 213 on spot.

Options: Nifty Short Strangle

  • Sell 21 Jan 14,950 CE at 22 and Sell 21 Jan 14,200 PE at 32
  • Premium Inflow (Max Profit): 54
  • SL: 80

The Nifty for the past few weeks has been trending quite strongly while it made an all-time high of 14,653. However, the number of stocks in UpTrend is reducing gradually from the NSE 200 basket inkling a consolidation/range bound activity going ahead. Based on the current ATM IV of around 17%, a probabilistic (70%) range for Nifty till 21 Jan should be between 14,250 and 14,950. In this situation, a Short Strangle may be initiated.

Forex & Interest Rate Technical
Analyst: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives

USD-INR: Feb 24 expiry.

  • Buy 73.50 Put option
  • Sell 72.50 Put option and sell 74.00 Call option
  • Equal quantity on all legs.
  • Total Premium paid: 14 paise
  • Max profit: 86 paise
  • Stop Exit strategy if USD-INR trades above 74.00 levels.

Commodity Calls
Analyst: Ravindra Rao, VP- Head Commodity Research

Commodity

Exchange Strategy
Gold (Feb) MCX Sell at 49200/49300
TP: 48600/48400
SL: 49700
Crude Oil (Jan) MCX Sell at 3920/3940
TP: 3800/3760
SL: 3980
Copper (Jan) MCX Sell at 614/615
TP: 605/603
SL: 618
Soybean (Feb) NCDEX Buy at 4600/4580
TP: 4700/4730
SL: 4540





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here