Technical view: Outlook on Nifty IT
Analyst: Technicals: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst
The Nifty IT index witnessed a strong day of trade during Wednesday’s session and is trading in a strong higher top higher bottom chart structure. Majority of its constituents have added continued long positions during the December series, indicating a positive bias. On the daily charts, the index has given a flag pattern breakout, hinting a continued upward momentum in the favour of the bulls. We expect the index to gradually move higher up to 26,000 levels during the January series.
| Stock | Reco. | CMP (Rs) | Target (Rs) | Stop Loss (Rs) | Note |
| Max Financial Services | Buy | 684 | 720 | 660 | Stock has given a a consolidation breakout on the daily chart. |
| HUL | Buy | 2,370 | 2,450 | 2,325 | Stock has given a Flag pattern breakout on the daily chart. |
| P&G Health | Buy | 7,050 | 7,300 | 6,850 | Stock has given a Flag pattern breakout on the daily chart. |
F&O Strategy
Analyst: Rupak De, Senior Research Analyst
Tata Motors ended the session on a strong note. The stock has moved up after forming a long legged doji on the daily chart, which is a bullish set up. On the option front, unwinding is seen in the call writing positions of 170 strike price and a fresh addition of open interest was seen in 175 strike price, suggesting expiry at higher level.
Trade:
Tata Motors Bull Call Spread(Hold till expiry)
Buy 1 lot Tata Motors 31 Dec 170 CE @ Rs 4.3, Sell 1 lot Tata Motors 31 Dec 175 CE @ Rs2.5
- Net Premium outflow: Rs 1.8/lot (approx)
- Maximum loss: Rs 1.8/lot (approx)
- Maximum profit: Rs 3.2/lot (approx)
Futures
Buy Marico Dec Future at Rs 402-406
- Stop loss: Rs 395
- Target: Rs 424
Commodity Calls
Analyst: Rupak De, Senior Research Analyst
| Commodity | Exchange | Strategy |
| Gold (Feb) | MCX | Buy in range Rs 50,000-50,100 SL below Rs 49,800 Target: Rs 50,300/50,550 |
| Crude Oil (Jan) | MCX | Buy in range Rs 3,440-3,460 SL: Rs 3,400 Target: Rs 3,520/3,560 |
| Copper (Dec) | MCX | Buy in the range of Rs 592-595 SL: Rs 590 Target: Rs 602/605 |
Forex Technical
Analyst: Rupak De, Senior Research Analyst
USD/INR Status: Likely to move towards 74.50 levels
Call for the day: Go long in Dec future around 73.70
- Target: 74.50
- Stop loss: 73.37
EUR/INR Status: Likely to move towards 88.50 levels
Call for the day: Go short in Dec future around 90
- Target: 88.50
- Stop loss: 90.7
