Nifty Outlook
Nifty50 takes a pause yet again at its previous highs. This is a clear sign of a loss of momentum at higher levels. According to the Elliot wave theory, the price still seems to be in a corrective Wave B and Wave C and downward movements should follow.
Stock ideas
- Buy Muthoot Finance at CMP of Rs 1,507 for a target of Rs 1,610 with a stop loss at Rs 1,450
After a breakout above the trading range, Muthoot Fin has been making a base around Rs 1,450, from where it could give a follow through rally to the range breakout. A move above Rs 1520 will see a strong momentum on the upside.
- Buy Navin Fluorine at CMP of Rs 3,411 for a target of Rs 3,650 with a stop loss at Rs 3,290
Following the completion of its first round of correction, Navin Fluorine has given a breakout after making a base at level of Rs 3,300.
- Sell Balkrishna Ind July futures at CMP of Rs 2,206 for a target of Rs 2,050 with a stop loss at Rs 2,295
After registering a fresh all-time high, the stock has broken its previous swing low, thereby indicating the first sign of bearishness. Volumes registered on the breakout are above average, further confirming the bearish outlook.
- Sell Petronet July futures CMP of Rs 230.1 for a target of Rs 210 with a stop loss at Rs 235.75
After trapping the bulls at Rs 250, the stock slid from the levels of Rs 250-229. The stock has given a follow through to this breakout.
Derivatives
In index futures, FIIs have trimmed their long exposure from 82k long contracts to 37k long contracts. At the same time, retail client participation has turned net long in index futures. Such positioning calls for a correction or pause in the uptrend. However, we are witnessing strong buying strength at lower levels around 15,500.
On the options front, the 15,500 level will be crucial support for Nifty on the downside. This strike has the maximum put open interest. On the upside, 15,800 will act as resistance.
Actionable
Nifty Bank
Sell Nifty Bank 35,000 straddle @ current spread of 505; buy Bank Nifty 34,500 PE @ 133 and 35,500; CE @ 39;
Expiry: June 24
(Parag Shah is Technical Analyst-Research at Edelweiss Wealth)
By Munjaal Raval
FX Technical
USDINR status: The pair has resumed upward momentum after finding support near 72.35.
Current spot: 74.37
Call for the day: Buy on dips around 74.10
Target: 75.00
Stop loss: 72.90
USDJPY status: The pair breaks above its critical 110 handle.
Current spot: 110.40
Call for the day: Buy on dips around 110.10
Target: 111.50
Stop loss: 109.60
(Munjaal Raval – Technical Analyst, Research, Forex & Rates, Edelweiss Wealth)
Commodities
By Ankit Narshana
- Buy Silver at 68000 target 69500 stop loss 66900
- Buy MCX Gold at 47100, target 47600 stop loss 46800
- Sell MCX Copper at 706, target 670
(Ankit Narshana is Commodity Analyst-Research at Edelweiss Wealth)
