IIFL Securities
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst
The Nifty Bank index witnessed a huge selloff during the Wednesday’s session and has retraced ~61.8% of its previous up move in just the last four trading sessions. Majority of its constituents have witnessed long unwinding ahead of the January expiry, indicating a negative bias. However, the index is currently trading around its rising trendline support and is expected to bounce back from its oversold territory. We expect the index to hold its immediate base of 30,000 and expire the January series above the mentioned strike price in today’s trading session.
Technical view: Outlook on Nifty Bank
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst
The Nifty Bank index witnessed a huge selloff during the Wednesday’s session and has retraced ~61.8% of its previous up move in just the last four trading sessions. Majority of its constituents have witnessed long unwinding ahead of the January expiry, indicating a negative bias. However, the index is currently trading around its rising trendline support and is expected to bounce back from its oversold territory. We expect the index to hold its immediate base of 30,000 and expire the January series above the mentioned strike price in today’s trading session.
Tech Picks
| Stock | Reco. | CMP (Rs) | Target (Rs) | Stop Loss (Rs) | Note |
| SBI Life | Buy | 882 | 925 | 860 | Stock has formed a bullish engulfing candlestick pattern on the hourly chart. |
| UBL | Buy | 1301 | 1375 | 1250 | Stock has given a flag pattern breakout on the daily chart. |
| Tata Elxsi | Buy | 2660 | 2800 | 2550 | Stock is on the verge of giving a flag pattern breakout on the hourly chart. |
F&O Strategy
Analyst: Rupak De, Senior Research Analyst
The price of Tech Mahindra has formed higher top for the first time after a series of lower top and lower bottoms on the hourly chart. The momentum indicator RSI is in a positive divergence. On the option front, call writers have shed some position in the strike of 1020, indicating a higher closing on expiry from the current level.
Trade: (Intraday)
- Buy 1 lot TechM 28 Jan 1010 CE @ Rs 2.5
- Sell 1 lot TechM 28 Jan 1020 CE @ Rs 1.65
- Net Premium outflow Rs 0.85/lot (debit/appx)
- Maximum Loss: Rs 0.85/lot (appx)
- Maximum Profit: Rs.9.15/lot (appx)
Futures:
Buy SBI Life Feb Future at Rs 880-885
- Stop loss: Rs 859
- Target: Rs 965
Commodity Calls
Analyst: Rupak De, Senior Research Analyst
| Commodity | Exchange | Strategy |
| Gold (Apr) | MCX | Sell in range of Rs49,100-49,200 SL above Rs 49,350 Target: Rs 48,800/48,600 |
| Crude Oil (Feb) | MCX | Buy in range Rs 3,850-3,870 SL: Rs 3,770 Target: Rs 3,950/4,030 |
| Copper (Feb) | MCX | Sell in the range Rs 606-608 SL: Rs 612 Target: Rs 600/595 |
Forex Technical
Analyst: Rupak De, Senior Research Analyst
USD-INR Status: Likely to move towards 72 levels
- Call for the day: Go short in Feb future around 72.90
- Target: 72
- Stop Loss: 73.30
GBP-INR Status: Likely to move towards 101 levels
- Call for the day: Go long in Feb future around 99.80
- Target: 101
- Stop Loss 99.40
