Index: Nifty
With months of underperformance, the ratio of Bank Nifty to Nifty has formed a piercing pattern giving a buy signal for the upside of 8% in the ratio. The Bank Nifty index, too, breaks above its previous swing high on lower time frame charts and gave a highest closing since January 2020. Index is now poised for an immediate 5% up move.
Top trading ideas
Analyst: Sagar Doshi, Technical Analyst, Research, Edelweiss Wealth Management
CESC: BUY
- CMP: Rs 663
- Target: Rs 735
- Stop loss: Rs 629
- The stock had broken out of the trading range of Rs 630-580. It has given a follow through to that breakout, suggesting a continuation of the bullish momentum.
Chola Fin: BUY
- CMP: Rs 442
- Target: Rs 490
- Stop loss: Rs 460
- Chola Fin has seen a stupendous rally and has been one of the outperformers in the financial space. Recent movement suggests that the bullish momentum is likely to continue as long as the stock trades above Rs 425.
PEL: BUY
- CMP: Rs 1,567
- Target: Rs 1,650
- Stop loss: Rs 1,495
- PEL has given a breakout after making a base around Rs 1,500-1,480 levels. Volumes registered on breakout also suggest strong hands have entered the stock.
Sun TV: BUY
- CMP: Rs 527
- Target: Rs 560
- Stop loss: Rs 510
- After facing resistance around Rs 500 levels on numerous occasions, Sun TV was able to give a breakout of this resistance with above average volumes. Currently, it has given a follow through to the breakout, which indicates that the upward momentum is likely to continue.
F&O Tracker
Analyst: Sagar Doshi, Technical Analyst, Research, Edelweiss Wealth Management
As per option structure, 32,000 Call saw maximum unwinding in yesterday’s trading session and also added during closing 32,000 Put saw maximum writing. This suggests, for this week, 32,000 is likely to remain strong support for longs.
Actionable
Bull Call spread
Buy Bank Nifty (14 Jan expiry) 32,300 Call option and sell 32,800 Call in net spread of 224
- Stop loss: Rs 130
- Target: Rs 495
Forex Technical
Analyst: Munjaal Raval, Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR Status:
USD-INR is moving towards its critical support zone, which is placed around 73.00 handle.
- Current Spot: 73.25
- Call for the day: Buy on dips around 73.10
- Target: 73.80
- Stop Loss: 72.80
GBP-USD Status:
GBP-USD has reversed after finding support near 1.3450 level.
- Current Spot: 1.3580
- Call for the day: Buy on dips around 1.3550
- Target: 1.38
- Stop Loss: 1.34
Commodities
Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management
Buy MCX copper around Rs 611
- Target: Rs 625
- Stop loss: Rs 605
Sell MCX Silver on rise around Rs 67,000-67,200
- Target: Rs 64,000
- Stop loss: Rs 68,100
Sell MCX Gold on rise around Rs 50,000
- Target: Rs 48,000
- Stop loss: Rs 50,500
