Analyst: Chandan Taparia, Derivative & Technical Analyst, MOFSL
Nifty index opened positive above 15700 zones and touched yet another lifetime high of 15733 levels in the first half of the session on Friday. However, the second half of the day, saw muted movement and index settled with losses of around 20 points. It formed a small Bearish candle on daily while a Bullish candle with higher highs on weekly scale. It continues its higher highs – higher lows formation of the last four weeks. Now, it has to hold above 15600 zones to witness an up move towards fresh life time high of 15800 and 16000 zones while on the downside support exists at 15550 and 15431 zones.
Stocks (spot levels) :
DERIVATIVES
India VIX moved up by 1.27% from 15.74 to 15.94 levels. India VIX is near to its lowest levels of last 17 months since February 2020 and falling VIX could extend the bullish market momentum towards new high territory. On option front, Maximum Put OI is at 15000 followed by 14500 strike while maximum Call OI is at 16000 followed by 15500 strike. Minor Call writing is seen at 16000 then 15700 strike while Put writing is seen at 15000 then 15500 strike. Option data suggests a trading range in between 15000 to 16000 zones while an immediate trading range in between 15500 to 15850 zones. Bank Nifty opened slightly positive but underperformed the broader market. It mostly traded southwards during the day and finally closed the session with losses of around 360 points. It formed a Bearish candle on daily scale but continues its higher highs – higher lows formation of the last four weeks. Now it has to hold above 35250 zones to witness an up move towards 35750 and 36000 zones while on the downside support exists at 35000 and 34750 levels.
NIFTY: BULL CALL SPREAD: +15700 CE – 15850 CE (10th June, 2021)
BUY 1 LOT OF 15700 CALL @ 89
SELL 1 LOT OF 15850 CALL @ 35
NET PREMIUM PAID: 54 POINTS
KEEP SL OF NET PREMIUM OF 14 POINTS: RISK OF 40 POINTS
KEEP TARGET OF NET PREMIUM OF 145 POINTS: REWARD OF 91 POINTS
RATIONALE
Major trend is positive and forming higher highs – higher lows and trading in a new price territory India VIX is sustaining lower with rise in Put Call Ratio suggesting an overall bullish undertone of the market Put writing is intact at lower strikes which could provide support
Fx Technical
By Mr. Kishore Narne, Head – Currency & Commodities, MOFSL
USD/INR Status: The pair is likely to trade with positive bias in the short-term!
CMP: 73.16, Target: 73.60, Stop Loss: 72.45
Trade: The pair is likely to trade with positive bias in the upcoming trading sessions. Buying around 72.95 will be advised targeting 73.60 area. Our bias will negate if price break and sustains below 72.45.
EURUSD Status: The pair is likely to trade in a higher range in short-term!
CMP: 1.2165, Target: 1.2300, Stop Loss: 1.1985
Trade: The recent recovery is likely to continue in the short-term and dip buying around 1.21 is advised for the pair. Strong support is placed at 1.1985 and it is likely to target 1.23 levels.
Commodity Calls:
By Amit Sajeja, VP- Commodities, MOFSL
