Nifty: Day trading guide for Friday

Nifty and Sensex outlook

Market on Wednesday closed at the level of 15170/51250 on Nifty and Sensex respectively and reached a high. However, traders were not keen to carry positions due to the bank holiday on Thursday and the sentiment can remain the same on Fridays too, as it can be a weekend getaway but on next Monday we can see a strong trend.

Technically, the market closed above the levels of 15150/51250, which could maintain the market’s bullish continuation. We may see at least 15280/51250 or 15350/52000 levels in the near term. However, if the Nifty/Sensex fails to break the 15280/51750 level, it may send the market to consolidation between 15000/50750 and 15280/51750 range. If the indices goes below 15000/50750, the bullish trend will break. Bond yields and the dollar index would once again determine the market trend in the coming days.

Tech Picks

Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

Bajaj Finance
: Buy

• CMP: Rs 5545
• Target: Rs 5710
• Stop loss: Rs 5450
• The stock has given a breakout from an inverse head and shoulder chart pattern with incremental volume activity on daily chart.

Cipla: Buy

• CMP: Rs 812.4
• Target: Rs 840
• Stop loss: Rs 798
• The stock is trading in an ascending triangle chart formation and the breakout is likely from the consolidation range for subsequent rally.

Tech Mahindra: Buy

• CMP: Rs 1008.75
• Target: Rs 1040
• Stop loss: Rs 990
• A fresh breakout is apparent from a sloping trend line resistance with a rising volume on daily chart.

Bharti Airtel: Buy

• CMP: Rs 525.85
• Target: Rs 540
• Stop loss: Rs 515
• Reversal formation from a double bottom chart pattern with good accumulation near support zone makes it a favorable risk and reward candidate.

F&O Strategy
Analyst: Sahaj Agrawal, Head of Research- Derivatives

Futures:

BUY M&M Finance Future March at 212

• Stop loss: Rs 206
• Target: Rs 226
• Bullish Flag breakout seen above 210 on spot.

Options:
Nifty Bull Call Spread: 25 Mar-21 Series

Buy 15100 CE at Rs 310 and Sell 15500 CE at Rs 115

• Premium outflow (Cost): Rs 195
• Stop loss: Rs 90
• Target: Rs 350/400
• Nifty continues to trade in an Up-trend, after it recently made a corrective low of 14467. A fresh momentum has been seen on Wednesday above 15150 along with an improvement in Market Breadth. We expect Nifty to re-test 15500 levels.

Forex & Interest Rate Technical
Analyst: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives

USDINR: Sell March futures between 73.30/50

• Target: 72.80/72.60
• Stop loss: 73.70

Commodity Calls
Analyst: Ravindra Rao, VP- Head Commodity Research