Index: Nifty
Nifty continues to climb a wall of worry as it looks to be in the final leg of its rally before heading for a correction. The zone of 15,750-16,220 is where Nifty should be completing its final leg. Thereafter, it should undergo time or price correction.
STOCK IDEAS:
Analyst: Parag Shah – Technical Analyst, Research, Edelweiss Wealth Management
Ceat: Buy
CMP: Rs 1,381
Target: Rs 1,475
SL: Rs 1,340
After a massive underperformance, Ceat has started showing some strength after making a base around Rs 1,300-1,280 levels. The stock has broken above its previous swing top after the base formation. Volumes have also increased at breakout.
IndusInd Bank: Buy
CMP: Rs 1,034
Target: Rs 1,110
Stop loss: Rs 996
has been trading in a range. The upper end of the trading range, which is around Rs 1,330, has been breached with above average volumes.
ONGC:Buy
CMP: Rs 125.35
Target: Rs 132
Stop loss: Rs 121
After breaking out from a Multiple Top pattern, ONGC has given a follow through to this breakout. This breakout is also accompanied with higher volumes.
Manappuram Finance: Buy
CMP: Rs 168.3
Target: Rs 180
Stop loss: Rs 163
has given a breakout above its previous swing high levels of Rs 167.00. This breakout also compliments a trend line breakout. The origin of the trend line is from levels of Rs 185, which were also the tops registered in February 2021.
DERIVATIVES:
- FIIs long exposure in index futures have come down from 77% to 51%. There have been some profit booking at higher levels. However, FIIs have turned net buyers of stock futures.
- Indices IV trading at the lower end of the range with indices trading at all-time high. India VIX has given its lowest weekly closing since Feb 2020.
- On the option front, 15,700 level will be the crucial support for Nifty on the downside. This strike has maximum Put Open Interest. On the upside, 15,900 will act as resistance.
Actionable: Nifty Bank
Buy Nifty Bank 35,300 CE
CMP: 185
SL: 80
Target: 380
Expiry: 17 June
FX Technical
Analyst: Munjaal Raval – Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR Status: USD-INR has resumed upward momentum after finding support near 72.35 level.
Current Spot: 73.32
Call for the day: Buy on dips around 73.10
Target: 74.00
Stop Loss: 72.85
EUR-USD Status: EUR-USD is hovering near its immediate support zone, which is placed around 1.21 handle.
Current Spot: 1.2115
Call for the day: Buy on dips around 1.21
Target: 1.23
Stop Loss: 1.20
Commodities
Analyst: Ankit Narshana, Commodity Analyst, Edelweiss Professional Investor Research
- Buy copper at Rs 710; stop loss: Rs 699; target: Rs 725
- Sell MCX silver at Rs 71,350; target: Rs 69500; stop loss: Rs 71,950
- Sell MCX gold below 48330; target: Rs 47,950; stop loss: Rs 48,525
