Technical view: Outlook on Bank Nifty
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst
The Bank Nifty index has witnessed a strong selloff during the last five trading sessions and has entered a lower top lower bottom chart structure on the daily timeframe for the first time since September 2020, indicating a negative bias. The index future has witnessed an addition of short positions as the underlying price trends lower along with a rise in the open interest. We expect the index to continue to trade with a negative bias and test our immediate target price of 33,500 during the March series.
Tech Picks
| Stock | Reco. | CMP (Rs) | Target (Rs) | Stop Loss (Rs) | Note |
| Canara Bank | Sell (Fut) | 150.5 | 145 | 155 | Stock has given a classical triple top breakdown on the daily chart. |
| ICICI PruLife | Sell (Fut) | 429 | 415 | 440 | Stock has given a head & shoulder breakdown on the daily chart. |
| Kei Industries | Buy | 547 | 570 | 530 | Stock has given a channel pattern breakout on the daily chart. |
F&O Strategy
Analyst: Rupak De, Senior Research Analyst
On the daily chart, Axis Bank has been making lower tops, indicating a waning optimism. The momentum indicator RSI is in a negative crossover. On the options front, Call writers have maintained their positions around the underlying CMP whereas Put writers seem to be unwinding their position, pointing towards near-term bearishness.
Trade: Hold till expiry: 25 March 2021
Buy 1 lot Axis Bank 25 March 720 PE @ Rs 14.85
Sell 1 lot Axis Bank 25 March 710 PE @ Rs 11.15
Net Premium outflow Rs3.7/lot (debit/appx)
Stop loss: Rs 3.7/lot (debit/appx)
Maximum profit: Rs.6.3/lot (credit/appx).
Futures:
Buy Bharti Airtel March Future at Rs 522-525
Stop loss: Rs 514
Target: Rs 545
Commodity Calls
Analyst: Rupak De, Senior Research Analyst
| Commodity | Exchange | Strategy |
| Gold (Apr) | MCX | Buy in range of Rs 44,900-44950; SL below Rs 44,800; target: Rs 45,100/45,200 |
| Crude Oil (March) | MCX | Sell in range of Rs 4,700-4,720; SL: Rs 4,751; target: Rs 4,650/4,600 |
| Copper (March) | MCX | Buy in the range of Rs 672-672.50; SL: 669; Target: 676/680 |
FX Technical
Analyst: Rupak De, Senior Research Analyst
USD/INR Status: Likely to move towards 72 levels
Call for the day: Go short in March future around 72.70
Target: 72
Stop loss: 73
GBP/INR status: Likely to move towards 101.7 levels
Call for the day: Go long in March future around 100.50
Target: 101.7
Stop loss: 99.98
