Index: Nifty
Nifty continues to remain directionless as sentiment remains weak amongst traders. Index’s upper end of the range is sliding lower and lower from 15,300 to 14,800, while the lower end of the range remains intact at 14250. This suggests that price should breakout of its range sooner or later. The direction of the price as per Elliot wave theory should be on the lower side and towards 13,000 sub level.
Top trading ideas
Analyst: Parag Shah, Technical Analyst, Research, Edelweiss Wealth Management
Alkem: BUY
CMP: Rs 2,798
Target: Rs 3,000
SL: Rs 2,710
After forming a Double Bottom Pattern, prices are consolidating in a range from Rs 2,800 on the higher side and Rs 2,700 on the lower side. Prices have broken this range on the upper side. A close above Rs 2,835 is likely to witness further momentum.
Pru: BUY
CMP: Rs 553.7
Target: Rs 610
Stop loss: Rs 531
ICICI Pru has given a breakout from a classic Pole and Flag pattern. This pattern has resulted in the stock breaking its previous all-time highs. Volumes registered during the formation of this pattern was above average.
(May): SELL
CMP: Rs 6,544
Target: Rs 6,100
Stop loss: Rs 6,725
Maruti has given a breakdown below its previous swing lows. Despite a strong pullback in prices after reporting sales numbers, the previous swing high remains unconquered, which is an indication of aggressive short positions that are still open.
Berger (May): SELL
CMP: Rs 706.3
Target: Rs 680
Stop loss: Rs 730
Berger Paint has given a break down from a rising trend line drawn from its previous swing bottoms. The stock has failed to breach its immediate swing tops, which is a sign of bearishness
F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management
- FIIs long exposure on index futures is at 2-month low. Their net position stands at 6k long contracts. At the start of the series, FIIs net position stood at 52k long contracts. In the last two trading sessions, FII have unwounded 46k long contracts. We expect indices to remain under pressure until FII long exposure starts increasing.
- Option chain indicates Nifty trading range between 14,400-14,800. If Nifty starts trading outside this range, we can see huge momentum due to short covering by option sellers. The max pain level is 14500.
Actionable: Sell Nifty 14500 straddle and buy Nifty 14200 PE and 14800 CE.
Net Inflow: 180
SL: 250
Target: 40
FX Technical
Analyst: Munjaal Raval – Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR Status
USD-INR is moving towards its 61.8% Fibonacci retracement, which is placed around 73.50.
Current Spot: 73.86
Call for the day: Buy on dips around 73.50
Target: 74.50
Stop Loss: 73.20
EUR-USD Status
EUR-USD is approaching its critical multi-pivot support zone placed around 1.1960.
Current Spot: 1.20
Call for the day: Buy on dips around 1.1960
Target: 1.2150
Stop Loss: 1.1890
Commodities
Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management
- Buy Silver in range Rs 70500-71000; Target: Rs 74800; stop loss: Rs 69600
- Buy MCX Copper above Rs 770; Target: Rs 785; stop loss: Rs 759
- Buy MCX Gold above Rs 47300; target: Rs 48700; stop loss: Rs 46900
