Nifty Outlook for Monday
Nifty index opened negative but managed to hold 14300 zones and headed towards 14460 marks in the initial hour of the session on Friday. However, it was unable to hold at higher zones and corrected towards 14273 marks in second half of the session. Technically, it formed a small bodied candle similar to Doji on daily and weekly scale with long shadows indicating tug of war between Bull and Bears. Now, it has to cross and hold above 14400 zones to witness a bounce towards 14600 and 14700 zones while on the downside, support exists at 14250 and 14150 zones
Stocks (spot levels):
Derivatives
India VIX fell down by 1.43% from 23.02 to 22.69 levels. India VIX needs to hold below 20 zones to again attract bullish stance in the market. 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 15000 then 14800 strike while Put writing is seen at 14000 and 14200 strike. Option data suggests a wider trading range in between 14000 to 14700 zones.
Bank Nifty opened negative but managed to move in the positive territory and headed towards 32150 zones on Friday. However, it failed to hold the higher zones and concluded the day with losses of around 60 points. It formed a Bullish candle on daily and weekly scale with major weekly support of 30500 zones. Now it has to continue to trade above 31700 zones for an up move towards 32250 and 32500 zones while on the downside support can be seen at 31250 and 31000 zones.
Nifty: Bull call spread: : +14400 CE – 14550 CE (29th April, 2021)
Buy 1 lot of 14400 call @ 130
Sell 1 lot of 14550 call @ 64
Net premium paid: 66 points
Keep SL of net premium of 18 points: Risk of 48 points
Keep target of net premium of 145 points: reward of 79 points
Rationale
Major trend is positive and declines are being bought again
India VIX has cooled down with rise in Put Call Ratio indicates overall bullish undertone of the market
Put writing is intact at lower strikes which could provide support
Fx Technical
By Kishore Narne, MOFSL
USD/INR status: Short-term trend remains positive!
CMP: Rs 75.05,
Target: Rs 75.85
Stop Loss: Rs 74.35
Trade: Short-term trend looks bullish as long as the pair is trading above the support of 74.35 level. Buying on dips is advised targeting higher resistance at 75.85 level.
EUR/USD Status: Short-term trend remains positive!
CMP: 1.2070,
Target: 1.2210
Stop Loss: 1.1940
Trade: The pair is having short-term support at 1.1940 mark and a rally towards higher resistance at 1.2210 looks likely. Buying on dips is advised.
Commodity Calls:
Amit Sajeja, MOFSL
