Day trading guide for Monday

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Day trading guide for Monday


Chandan Taparia, MOFSL


Nifty Outlook
Nifty index opened positive on Friday but failed to surpass previous day’s high of 13773 and corrected towards 13650 zones. However, it witnessed a smart recovery of 100 points from lower levels and closed the day on flattish note with its highest ever close. It has been forming higher highs – higher lows on weekly scale from last seven weeks while formed a small Bearish candle with long lower shadow on daily scale which indicates that every small decline is being bought in the market. Now it has to continue to hold above 13600 zones to witness an up move towards 13850 then 14000 zones while on the downside support exists at 13500 zones.

Stocks (spot levels) :

Derivatives

India VIX was down by 0.90% from 18.79 to 18.62 and is holding well below 20 zones. Overall lower levels of volatility suggests that Bulls are holding the tight grip and any small decline could be bought in the market. On option front, Maximum Put OI is at 13000 followed by 13500 strike while maximum Call OI is at 13000 followed by 14000 strike. Marginal Call writing is seen at 14000 then 14200 strike while Put writing is seen at 13700 then 13500 strike. Option data suggests an immediate trading range in between 13500 to 14000 zones.

Bank Nifty remained consolidative in narrow range of 600 points in between 30350 to 30950 zones for entire week. It witnessed some profit booking on the last trading session and corrected towards key support of 30350 zones. It witnessed a Doji candle on weekly while a small Bearish candle on daily scale. Now it has to continue to hold above 30500 zones to witness an up move towards 31000 then 31200 zones while on the downside supports are seen at 30350 then 30200 levels.

Nifty: Weekly

Bull Call Spread: +13750 CE – 13900 CE (25th Dec, 2020)

Buy 1 lot of 13750 call @ 101
Sell lot of 13900 call @ 38


Net premium paid: 63 points


Keep SL of net premium of 27 points: Risk of 36 points

Keep target of net premium if 140 points: Reward of 77 points

Raionale

Nifty index has been witnessing buying interest at every small decline and heading towards new life time high territory.

India VIX is holding well below 20 zones which indicates tight bulls grip in the market.

Put Call Ratio has increased with Put writing at immediate strikes.

Fx Technical

Kishore Narne, MOFSL
USD/INR Status: Short-term pullback will be seen for the pair!

CMP: 73.53, Target: 74.50, Stop Loss: 72.50


Trade: The pair is likely to resume its short-term positive move and it looks to test 74.50 area. Initial dip towards 73.15 will be a good buying opportunity. Critical support is placed at 72.50.

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EUR/USD Status: The pair is likely to remain in a positive territory for short-term!

CMP: 1.2235, Target: 1.2375, Stop Loss: 1.2050

Trade: The pair is likely to trade with positive bias in the short-term and it looks to target 1.2375 area. Strong support is placed at 1.2050. Buying around 1.2175 is advised for the pair.

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Commodity Calls:

Amit Sajeja,
MOFSL

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