Day trading guide for Monday’s session

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Day trading guide for Monday's session


Nifty index opened gap up in line with the positive Global cues and continued its upstream towards new life time high of 14367 zones. It escalated throughout the day and buying interest was seen across the street as any small decline was being bought. The last hour of the session saw a rally fueled by the bulls and the day settled with decent gains of around 1.5%. It formed a healthy Bullish candle on daily and weekly scale along with it formation of higher highs from the last twelve trading sessions. Now it has to continue to hold above 14200 zones to witness a fresh move towards 14500 zones while on the downside major support exists at 14100 and 14000 levels.

DERIVATIVES

India VIX was marginal up by 0.10% from 20.62 to 20.64 levels. Volatility needs to cool down below 20 zones to support the bullish market setup and fuel the next rally with the higher market base. Bank Nifty opened gap up near 32300 zones but could not sustain at higher zones and slipped thereafter. It formed a Bearish candle on daily scale as it closed lower than its opening levels but continues its higher highs from the last five trading sessions. Now it has to continue to hold above 31750 zones to witness an up move towards 32500 and 32613 zones while on the downside support exists at 31500 and 31200 zones.

NIFTY : WEEKLY : BULL CALL SPREAD : +14350 CE – 14500 CE (14th Jan, 2021)

BUY 1 LOT OF 14350 CALL @ 109

SELL 1 LOT OF 14500 CALL @ 42

NET PREMIUM PAID : 67 POINTS

KEEP SL OF NET PREMIUM OF 25 POINTS : RISK OF 42 POINTS

KEEP TARGET OF NET PREMIUM OF 140 POINTS : REWARD OF 73 POINTS

RATIONALE:

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

India VIX was marginally up but indicates tight bulls grip in the market

Put Call Ratio has increased with Put writing at immediate strikes

Fx Technical

By Mr. Kishore Narne, Head – Currency & Commodities, MOFSL

USD/INR Status: Sideways-to-lower move looks possible in short-term!

CMP: 73.40, Target: 72.85 Stop Loss: 73.95

Trade: Short-term trend looks bearish as long as the pair is trading below the resistance of 73.95 level. Selling on rallies is advised targeting lower support at 72.85 level.

Resistance 73.55 73.70 73.85

Support 73.15 73.00 72.85

EURUSD Status: Short-term trend remains negative!

CMP: 1.2240, Target: 1.2050, Stop Loss: 1.2350

Trade: The pair is having short-term resistance near 1.2350 mark and a downfall towards lower support at 1.2050 looks likely. Selling on rise is advised.

Resistance 1.2280 1.2310 1.2350

Support 1.2190 1.2135 1.2050

Commodity Calls:

By Amit Sajeja, VP- Commodities, MOFSL

Commodity Exchange Trade

Gold (February) MCX Sell around 49500 SL 50100 Target 48400

Silver (March) MCX Sell around 66500, SL 68500, Target 62500

Copper (January) MCX Buy around 615, SL 605 Target 635

Soybean (January) NCDEX Buy around 4550 SL 4430, Target 4850





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