Chandan Taparia, MOFSL
Nifty index remained consolidative on Friday in range of 50 points but it continued its strength to hold above 14k levels. It started the new series and new decade on a positive note as it moved upwards steadily throughout the day to hit a new record life time high of 14049 marks. Nifty continued its winning streak and forming higher lows from last seven trading sessions. Now it has to continue to hold above 13850 zones to witness a fresh rally towards 14200 then 14500 zones while on the downside major support exists at 13777 and 13700 levels.
Stocks (spot levels) :
Derivatives
India VIX fell by 7.30% from 21.09 to 19.56 levels. Cool off in volatility below 20 zones supports the bullish market setup and fuels the bulls with a higher market base. Since, it is the beginning of new series so option data is scattered at different strikes. Maximum Put OI is at 13000 followed by 13500 strike while maximum Call OI is at 14000 followed by 14500 strike. Option data suggests a wider trading range in between 13500 to 14500 zones while an immediate trading range in between 13800 to 14200 zones.
Bank Nifty opened positive on Friday but failed to surpass previous day’s high of 31400 zones and traded flat to negative throughout the day. It moved in a narrow range with comparative choppy session and settled the day with losses of around 40 points. It formed a small Bearish candle along with an Inside Bar on daily scale while a Bullish candle on weekly scale. Now it has to continue to hold above 31000 zones to witness an up move towards 31500 and 31750 zones while on the downside support exists at 30800 and 30500 zones.
NIFTY : Weekly : Bull Call Spread: +14000 CE – 14150 CE (07th Jan, 2021)
Buy 1 lot of 14000 call@123
Sell 1 lot of 14150 call@52
Net Premium paid: 71 points
Keep SL of net premium of 25 points: Risk of 46 points
Keep target of net premium of 145 points: reward of 74 points
RATIONALE:
Nifty index has been witnessing buying interest at every small decline and heading towards new life time high territory
India VIX has cooled down 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-covering move looks likely in short-term!
CMP: 73.30
Target: 73.60
Stop Loss: 73.00
Trade: The pair has been in a steady decline recently and is now close to support. Short-covering move towards 73.60 looks likely. Buying on dips is thus advised.
GBPUSD Status: Short-term trend remains positive above 1.35!
CMP: 1.3630;
Target: 1.3740;
Stop Loss: 1.3490
Trade: The pair remains positive above short-term support near 1.35 mark and a rally towards 1.3740 looks possible. Buying on dips towards 1.3580 is advised.
Commodity Calls:
Amit Sajeja,
MOFSL
