Day trading guide for Monday

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Day trading guide for Monday


Nifty Outlook
Chandan Taparia, MOFSL

Nifty index opened flattish and gradually extend its move towards 15250 zones in the initial part of the last session. However, it failed to hold at higher zones and drifted towards 15080 mark in the latter part of the day but closed with marginal losses. It formed a Doji candle on daily scale while small bullish candle on weekly scale which suggests buying is witnessed at lower zones. Index has got stuck in between 15000 and 15250 zones from past five trading sessions. Now it has to hold above 15050 zones to continue its bullish momentum towards 15250 and 15500 zones while on the downside major support can be seen around 15000 and 14850 zones.

Stocks (spot levels) :

Derivatives

India VIX was down by 4.33% from 23.04 to 22.04. Now, VIX needs to cool down and hold below 21 zones for continuation in the ongoing momentum with higher market base. On option front, Maximum Put OI is at 14000 followed by 14500 strike while maximum Call OI is at 15500 followed by 16000 strike. We witnessed Put writing at 14500 and 15100 strikes while Call writing was visible at 15500 and 15800 strike. Option data suggests a wider trading range in between 14500 to 15500 zones while an immediate range between 15000 to 15300 zones.

Bank Nifty opened flattish but gradually extended its positive move towards 36300 mark due to buying interest in selective private banks. It relatively outperformed the benchmark index and managed to closed above 36000 zones. It formed a Bullish candle on daily scale while Doji on weekly scale. The index has got in range between 35500 to 36600 zones from past six sessions as buying is witnessed at lower zones while hurdle is intact at higher levels. Now it has to hold above 36000 zones to witness a move towards 36500 – 36600 zones while on the downside support seen at 35700 and 35500 zones.

Nifty : Weekly:

Bull Call Spread: +15200 CE – 15350 CE (18th Feb, 2021)

Buy 1 lot of 15200 call@ 101

Sell 1 lot of 15350 call@43

Net Premium Paid: 58 points

Keep SL of net premium of 25 points: Risk of 33 points

Keep target of net premium of 140 points: Reward of 82 points

Rationale:

Major trend is positive and decline could be bought again

India VIX has cooled down and fuelling the bullish undertone of the market

Put Call Ratio has increased with Put writing at immediate strikes

Fx Technical

Kishore Narne, MOFSL


USD/INR Status: Short-term bias has turned negative for the pair!

CMP: 72.73

Target: 72.20

Stop Loss: 73.50

Trade: The pair has broken the key support of 72.90 and bias has turned negative targeting 72.20 levels. Selling on rise is advised as long as price holds below 73.50.

Day trading -Feb 14-2

GBP/USD status: The pair is likely to continue its northward journey!

CMP: 1.3850

Target: 1.4050

Stop Loss: 1.3700

Trade: The pair has been trading with positive bias since past couple of week and is likely to continue the same targeting 1.4050. Dip buying is advised as long as price holds above 1.3700

Day trading -Feb 14-3

Commodity Calls:

Amit Sajeja, MOFSL

Day Trading4





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