Technical view: Outlook on Nifty
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst
The Nifty index witnessed a positive day of trade during the Wednesday’s session and is trading in a strong higher top higher bottom chart structure. Majority of its constituents have added continued long positions during the December series, indicating a positive bias. On the daily charts, the MACD histogram has re-entered into the positive territory for the first time in the December series, hinting a rising strength in the current rally. We expect the index to gradually move higher up to 14,300 levels during the January series.
Tech Picks
| Stock | Reco. | CMP (Rs) | Target (Rs) | Stop Loss (Rs) | Note |
| Dalmia Bharat | Buy | 1,078 | 1,125 | 1,035 | Stock has given a falling trendline breakout and is on the verge of giving a possible Flag pattern breakout on the daily chart. |
| Shree Cement | Buy | 24,600 | 25,500 | 23,750 | Stock has given a Triangle pattern breakout on the daily chart. |
| Oberoi Realty | Buy | 568 | 600 | 545 | Stock has given a bullish golden crossover (89/200 DEMA) breakout on the daily chart. |
F&O Strategy
Analyst: Rupak De, Senior Research Analyst)
The stock price of Wipro ended on a muted note at the end of Wednesday’s trade. The price has been in a narrow range for the week after a rally in the previous week. On the options front, Call writers have maintained heavy positions at Rs 390 strike price, whereas Put writers have been holding significant positions at Rs 380 strike price. Therefore, we expect December expiry within the bands of Rs 380-390.
Trade:
Wipro Short Strangle (Intraday) and Sell 1 lot Wipro 31 Dec 390 CE at Rs 0.40
- Sell 1 lot Wipro 31 Dec 380 PE at Rs 0.40
- Net Premium inflow: Rs 0.8/lot (approx)
- Maximum Profit: Rs0.8/lot (approx)
- Stop Loss: 1.2 (approx)
Futures:
Sell MGL Jan Future at Rs 1,076-1,081
- Stop loss: Rs 1,100
- Target: Rs 1,030.
Commodity Calls
Analyst: Rupak De, Senior Research Analyst
| Commodity | Exchange | Strategy |
| Gold (Feb) | MCX | Sell in range Rs 50,000-50,100; SL above Rs 50,250; TGT: Rs 49,750/49,600 |
| Crude Oil (Jan) | MCX | Buy in range Rs 3,520-3,540; SL: Rs 3,480; Target: Rs 3,580/3,620 |
| Copper (Jan) | MCX | Sell in the range Rs 604-606; SL: Rs 610; Target: Rs 596/590 |
Forex Technical
Analyst: Rupak De, Senior Research Analyst
USD/INR Status: Likely to move towards 74.30 levels
Call for the day: Go long in Jan future around 73.20
- Target: 74.30
- Stop loss: 72.70
GBP/INR Status: Likely to move towards 101 levels
Call for the day: Go long in Jan future around 99.40
- Target: 101
- Stop loss: 98.70
