Nifty has achieved multiple targets around 14750 as per Elliot wave theory and channeling techniques, indicating that the index could undergo a breather for some time now. The index has also closed below 20 DMA for the first time since November indicating first sign of weakness in index.
Top Trading ideas
Sagar Doshi, Edelweiss Wealth Management
Cipla:
BUY
CMP: 839
TGT: 885
SL: 810
Cipla has bounced back after taking support near levels of 800. Also this bounce back has ensured that the selling pressure at higher levels had no follow through and hence stock is still in its uptrend.
TVS Motor: BUY
CMP: 540
TGT: 585
SL: 517
TVS Motor has given a fresh breakout after taking support around 500. It has also closed above its previous swing high of 530. Higher volumes indicate higher strength on breakout.
Bajaj Finance: SELL (FEB)
CMP: 4920
TGT: 4600
SL: 5050
Bajaj Finance retraced back after it faced resistance around 5250 levels. It has shown initial signs of weakness as it closed below swing low of 5000.
HDFC: SELL (FEB)
CMP: 2575
TGT: 2400
SL: 2650
HDFC faced stiff resistance around the level of 2700 and the stock retraced back from those levels. The stock has given a fresh breakout on the downside as it closed below its swing low of 2560. Volumes are high on breakout which suggests participation is on the short side.
F&O Tracker
Sagar Doshi, Edelweiss Wealth Management
We have witnessed profit booking by FIIs in last 10 trading sessions as their long exposure in index futures has reduced from peak of 83% to 59%, lowest since the month of November. In stock futures, FIIs have unwound 60k long contracts in last 10 trading sessions.
On option front, 14000 to act as support on downside as this strike has maximum put open interest whereas 14500 strike will act as resistance.
Actionable:
Nifty:
Sell 14200 straddle (both CE & PE) at current spread of 202. Buy 13900 PE @ 14 and 14500 CE @ 17
FX Technical
Munjaal Raval,
Edelweiss Wealth
USDINR Status: USDINR is approaching its previous bottom support which is placed near 72.80 level.
Current Spot : 72.95
Call for the day : Buy on dips around 72.80
Target : 73.50
Stop Loss : 72.50
EURUSD Status: EURUSD has resumed its upward momentum after finding support near 1.2050.
Current Spot: 1.2150
Call for the day : Buy on dips around 1.21
Target : 1.2350
Stop Loss : 1.1990
Ankit Narshana, Edelweiss Wealth Management
Buy mcx copper only above 616 for the target of 628 and stop loss 607
Buy mcx gold above 49300 for target of 49900 stop loss 39900
Buy mcx silver above 67800 for the target of 69000 stop loss 66800
