Day trading guide for Friday – Economic Times

Kotak Securities

On the day of the weekly expiration of index options, the benchmark index witnessed profit booking. Post muted opening, the market registered selling pressure. The Nifty/Sensex opened at 15,238.70/ 51,903.86 and due to constant selling pressure, erased over 100/400 points.

Among sectors, financial services, auto and private banks witnessed selling pressure, while the Nifty PSU Banks gained the most, rallying over 5.50 per cent. We are of the view that the market is likely to continue the narrow range activity and PSU Banks and selective midcap and smallcap stocks will outperform in the near future.

Technical
On the daily charts index, higher bottom series formation and the texture of the market suggests uptrend is likely to continue if Nifty succeeds to trade above 15,050. Above the same, we can expect one more leg of the up move, up to 15,250, 15,330.

On the flip side, dismissal of 15,060 would result in further weakness and in that case Nifty could retest previous lows of 14,970. However, the strategy should be to buy between 15,000 and 14,950 and to keep a stop loss at 14,900 levels. The focus should be on the largecap companies as the market is approaching the major support area.

Tech Picks

Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

Tech Mahindra: BUY

  • CMP: Rs 1010.6
  • Target: Rs 1040
  • Stop loss: Rs 990

The stock has given a range breakout with a strong bullish Marubozu candlestick formation on the daily chart.

Asian Paints: BUY

  • CMP: Rs 2470.75
  • Target: Rs 2550
  • Stop loss: Rs 2430

A reversal from multiple support near the important retracement point with incremental volume activity is evident.

Tata Power: BUY

  • CMP: Rs 93.1
  • Target: 97
  • Stop loss: Rs 91

Higher high and higher low chart formation indicates bullish continuation in stock to remain in the near term.

BPCL: BUY

  • CMP: Rs 432.2
  • Target: Rs 445
  • Stop loss: Rs 425

The stock has given a breakout from inverse head and shoulder chart formation with rising volume on the daily chart.

F&O Strategy

Analyst: Sahaj Agrawal, Head of Research- Derivatives


Futures:

BUY Dabur Future at 520

  • SL: 505
  • Target: 550

Trend line Support seen at 515 on spot.

Options:

Nifty Bull Call Spread: 25-Feb Series:

  • Buy 15100 CE @ 155 and Sell 15400 CE @ 40
  • Premium outflow (Cost):115
  • SL: 50
  • Target: 250/300

Nifty is trending up with an immediate support of 15000. With Market Breadth remaining healthy, we expect Nifty to re-test 15400 levels.

Forex & Interest Rate Technical

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


USDINR: Sell between 74.80/73.00
Target: 72.20/72.00
Stop loss: 73.20

Commodity Calls

Analyst: Ravindra Rao, VP- Head Commodity Research

Commodity Exchange Strategy
Gold (Apr) MCX Buy at 48700/48600; TP: 49200/49400; SL: 48500
Crude Oil (Feb) MCX Sell at 3870/3880; TP: 3770/3750; SL: 3930
Copper (Feb) MCX Sell at 595/597; TP: 585/583; SL: 601
RSO (Feb) NCDEX Buy at 1065/1063; TP: 1090/1100; SL: 1050

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