Day trading guide for Monday

On a daily basis, the market has managed to revisit 13,770 levels. It was mainly due to excessive bullishness in the market. The heavyweights from the basket of the Nifty50 index closed in the green and above their immediate hurdles. It would lift the market to 13,850 or 13,900 levels in the near term. However, sustenance above the level of 13,900 would generate extra steam in the market. Otherwise, the trend would turn volatile between the broader ranges of 13,400 and 13,900. Our strategy for the coming week should be to focus more on stocks and sectors instead of indices. As we are at crucial levels, we should be more biased toward technology, pharmaceuticals and FMCG companies.

Tech Picks
Analyst: Shrikant Chouhan, Executive Vice President – Technical Research


Divis Lab: BUY

• CMP: Rs 3,749.6
• Target: Rs 3,870
• Stop loss: Rs 3,690
• The stock is trading well above its short term 20 DMA forming a higher bottom on the daily chart.

TCS: BUY

• CMP: Rs 2,909.35
• Target: Rs 2,990
• Stop loss: Rs 2,860
• Bullish continuation formation along with strong parabolic series suggest uptrend in the near term.

Tata Steel: BUY

• CMP: Rs 622.3
• Target: Rs 640
• Stop loss: Rs 610
• The MACD has turned positive and intraday charts suggest reversal formation is likely to continue in the near future.

Bajaj Finance: BUY

• CMP: Rs 5,184.9
• Target: Rs 5,350
• Stop loss: Rs 5,100
• Sharp reversal formation post Hammer candlestick pattern. and higher bottom series on intraday charts.

F&O Strategy
Analyst: Sahaj Agrawal, DVP-Derivatives, Research

Futures:


Buy Sun Pharma Future Dec 590

• Stop loss: 570
• Target: 625
• Bullish Flag breakout seen above 590 on spot.

Options:


Nifty Short Strangle: Sell 31 Dec 13,500 PE @ 37 and Sell 31 Dec 14,000 CE @ 23

• Premium Inflow: 60
• Stop loss: 90
• Target: 10
• The last couple of days have been a roller-coaster ride as Nifty. From 13,750 levels, it came down crashing all the way up to 13,130 and then saw a full recovery as well. Although markets are still in an upward trend, signs of fatigue are visible. The number of stocks in high upside momentum has reduced significantly inkling a consolidation/range bound activity going ahead. In this situation, a Short Strangle is apt.

Forex & Interest Rate Technical
Anayst: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives

USD-INR: Sell on rise between 73.80/74.00

• TP -73.20/73.00
• SL -74.30

Commodity Calls
Analyst: Ravindra Rao, VP- Head Commodity Research