Chandan Taparia, MOFSL
Nifty index opened flattish and moved southwards throughout the day in line with the weak global cues. It breached Thursday’s low and fell by more than 250 points near to 14350 zones. Index saw profit booking decline and selling pressure across all sectors and closed the session with loss of around 160 points. It formed a Bearish candle on daily scale and negated its formation of higher lows from the last six sessions. On weekly frame, it formed a Spinning Top kind of candle but continues to form higher highs from the last eleven weeks. Now it has to hold near to 14350 zones to witness a bulls grip to take it towards 14600 then 14750 zones while on the downside major support exists at 14300 and 14200 levels.
Stocks (spot levels) :
Derivatives
India VIX was up by 4.61% from 23.02 to 24.09 levels. Volatility spiked by around 24% in this week which is making some pause in positive momentum and needs to cool down below 20 zones to again get the bullish stance. On option front, Maximum Put OI is at 14000 followed by 13500 strike while maximum Call OI is at 15000 followed by 14500 strike. Call writing is seen at 14500 then 14600 strike while Put writing is seen at 13500 and unwinding at 13700 strike. Option data suggests a wider trading range in between 14000 to 14800 zones while an immediate trading range in between 14300 to 14600 zones.
Bank Nifty opened flattish and slipped down accompanying the broader market. It moved in wider range of 500 points and saw some recovery in the last hour of the day. It closed the day with losses of around 270 points. It formed a Bearish candle on daily scale and a Doji on weekly scale which indicates absence of follow up at new high territory. Now it has to hold near to 32000 zones to witness an up move towards 32500 and 32750 zones while on the downside support exists at 31750 and 31500 zones.
NIFTY : WEEKLY : BULL CALL SPREAD : +14450 CE – 14600 CE (21st Jan, 2021)
Buy 1 lot of 14450 call@142
Sell 1 lot of 14600 call@74
Net Premium paid: 68 points
Keep SL of net premium of 25 points: risk of 43 points
Keep target of net premium of 140 points: Reward of 72 points
Rationale:
Nifty index has been witnessing buying interest at every small decline and major trend is still positive India VIX was up but bullish undertone of the market is intact with bulls grip in the market Put Call Ratio has increased with Put writing at immediate strikes
Fx Technical
By Kishore Narne, MOFSL
USD/INR Status: Sideways-to-lower move looks possible in short-term!
CMP: 73.15,
Target: 72.50
Stop Loss: 73.65
Trade: Short-term trend looks bearish as long as the pair is trading below the resistance of 73.70 level. Selling on rallies is advised targeting lower support at 72.50 level.
EUR/USD Status: Short-term trend remains negative!
CMP: 1.2090,
Target: 1.1950,
Stop Loss: 1.2180
Trade: The pair is having short-term resistance near 1.2180 mark and a downfall towards lower support at 1.1950 looks likely. Selling on rallies is advised.
Commodity Calls:
Amit Sajeja, MOFSL
