Nifty
Hammer candlestick formation followed by inside body candles clearly indicate indecisiveness between the bulls and the bear. However, the medium-term texture of the market is still on the bullish side, but the daily and the intraday charts suggest that the uptrend may take a temporary pause near 14,620. If the index sustains above the same continuation of uptrend, it will continue to head towards 14,700 -14,775. On the flip side, trading below 14,500 could trigger quick short-term correction up to 14,350-13,250.
Tech Picks
Analyst: Shrikant Chouhan, Executive Vice President – Technical Research
HDFC Bank: BUY
- CMP: Rs 1,468.75
- Target: Rs 1,515
- Stop loss: Rs 1,440
- The stock has given a breakout from rectangle formation on the daily and weekly charts.
Tata Steel: BUY
- CMP: Rs 706.35
- Target: Rs 727
- Stop loss: Rs 695
- Strong breakout continuation formation likely to continue in the near term.
Muthoot Finance: BUY
- CMP: Rs 1,251
- Target: Rs 1,290
- Stop loss: Rs 1,232
- The stock is trading above short-term averages with strong higher bottom formation on the daily charts.
Siemens: BUY
- CMP: Rs 1,651.15
- Target: Rs 1,700
- Stop loss: Rs 1,620
- Strong Bar Reversal formation along with positive Parabolic SAR series suggest uptrend expected to continue in the near term.
F&O Strategy
Analyst: Sahaj Agrawal, DVP-Derivatives, Research
Futures: Buy ITC Future Jan at 214
- Stop loss: Rs 208
- Target: Rs 230
- Range breakout seen above 213 on spot.
Options: Nifty Short Strangle
- Sell 21 Jan 14,950 CE at 22 and Sell 21 Jan 14,200 PE at 32
- Premium Inflow (Max Profit): 54
- SL: 80
The Nifty for the past few weeks has been trending quite strongly while it made an all-time high of 14,653. However, the number of stocks in UpTrend is reducing gradually from the NSE 200 basket inkling a consolidation/range bound activity going ahead. Based on the current ATM IV of around 17%, a probabilistic (70%) range for Nifty till 21 Jan should be between 14,250 and 14,950. In this situation, a Short Strangle may be initiated.
Forex & Interest Rate Technical
Analyst: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives
USD-INR: Feb 24 expiry.
- Buy 73.50 Put option
- Sell 72.50 Put option and sell 74.00 Call option
- Equal quantity on all legs.
- Total Premium paid: 14 paise
- Max profit: 86 paise
- Stop Exit strategy if USD-INR trades above 74.00 levels.
Commodity Calls
Analyst: Ravindra Rao, VP- Head Commodity Research
