Index: Nifty
The Nifty and Bank Nifty remained below 20 DMA for the third consecutive day, an indicator which holds a lot of significance for the short-term trend. We recommend to remain on the sidelines till the time indices close above 20 DMA. As per Elliot wave, indices remained in the corrective phase. Any move above 15,080 will confirm the start of a minor wave III for the upside of 15,550.
Top trading ideas
Analyst: Parag Shah – Technical Analyst, Research, Edelweiss Wealth Management
Balrampur Chini: BUY
CMP: Rs 189.1
Target: Rs 210
Stop loss: Rs 182
The stock has given a breakout above its previous swing high at Rs 188. Volumes registered on breakout are also the highest since August 2020.
Chola Fin: BUY
CMP: Rs 538.55
Target: Rs 580
Stop loss: Rs 520
After making a base around Rs 500, Chola Fin is again showing momentum as it closed above its previous swing high of Rs 537. The stock could face a minor resistance around Rs 550-555, which was its intermediate high.
Tata Motors: BUY
CMP: Rs 345.75
Target: Rs 380
Stop loss: Rs 330
has given a breakout of a month long consolidation where it traded in a range from Rs 337 on the higher side and Rs 300 on the lower side. A strong move on the upside cannot be ruled out as the volumes registered on breakout are above average.
NMDC: BUY
CMP: Rs 133.85
Target: Rs 145
Stop loss: Rs 130
After completing its first round of correction,
has given a breakout above its previous swing top at Rs 131. The stock could face a minor resistance around Rs 142, which was its pre-Covid swing high.
F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management
- Ferocious selling was seen in last Friday’s session, which led to heavy short build up by FIIs on the index futures. However, due to no follow-up selling, we have witnessed short covering in Monday’s trading session. On a net basis, FIIs are still bullish and have 40,000 net long contracts. We advise to remain on the sidelines unless the index gives decisive close above 15,050
- India VIX has cooled off in the last two trading sessions after spiking up 28% in Friday’s session. We expect volatility to remain elevated.
Actionable: Nifty
Sell Bank Nifty 35,700 Straddle at current spread of 740. Buy 36,300 CE @ 103 and 34,900 PE @ 128
Net credit spread: 509
Expiry: 4 March
FX Technical
Munjaal Raval, Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR Status: USD-INR is moving towards its immediate support zone placed around 73.00.
Current Spot: 73.37
Call for the day: Buy on dips around 73.10
Target: 74.00
Stop Loss: 72.80
EUR-USD Status: EUR-USD is approaching its critical support of 1.20 handle.
Current Spot: 1.2020
Call for the day: Buy on dips around 1.20
Target: 1.23
Stop Loss: 1.1890
Commodities
Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management
- Buy MCX Silver at Rs 66,600; target: 69,000; stop loss: Rs 65,000
- Buy MCX Copper at Rs 703; target: Rs 730; stop loss: Rs 690
- Sell MCX Gold on rise at Rs 45,600; target: Rs 45,000; stop loss: Rs 45,900
