Nifty Outlook
Analyst: Chandan Taparia, Derivative & Technical Analyst, MOFSL
Nifty index opened positive and after a slight dip in the initial hour, it moved upwards but remained in a consolidative manner on Friday. It closed near its intraday high levels with the gains of around 40 points. It continued its lower lows from the last four sessions but formed a Bullish Hammer sort of candle on daily scale which indicates that declines are being bought. Now, it has to hold above 15700 zones to witness an up move towards 15850 and 15900 zones while on the downside support can be seen at 15600 and 15500 zones.
DERIVATIVES
India VIX fell down by 5.84% from 12.84 to 12.09 levels. India VIX gradually drifting lower and hovering near to its lowest levels of last 17 months. Lower volatility indicates a range bound move but at the same time decline could be bought. On option front, Maximum Put OI is at 15500 followed by 15000 strike while maximum Call OI is at 16000 followed by 16500 strike. Call writing is seen at 16100 then 16200 strike while Put writing is seen at 15000 then 15500 strike. Option data suggests an immediate trading range in between 15600 to 15900 zones.
Bank Nifty opened positive and moved in a zig zag fashion throughout the day. Banking stocks moved in a lackluster way and index lacked momentum. It formed a small bodied Bullish candle on daily scale and continues forming lower highs – lower lows from the last four sessions. Now it has to hold above 34750 zones to move up towards 35000 and 35250 zones while on the downside support exists at 34500 and 34250 levels.
- NIFTY: BULL CALL SPREAD: +15750 CE – 15850 CE (8th July, 2021)
- BUY 1 LOT OF 15750 CALL @ 69
- SELL 1 LOT OF 15850 CALL @ 30
- NET PREMIUM PAID: 39 POINTS
- KEEP SL OF NET PREMIUM OF 10 POINTS: RISK OF 29 POINTS
- KEEP TARGET OF NET PREMIUM OF 95 POINTS: REWARD OF 56 POINTS
RATIONALE
Major trend is positive and declines are being bought India VIX is sustaining at lower zones with hold in PCR OI suggesting an overall bullish undertone of the market. Put writing is intact at immediate strikes which could provide support to the market on declines.
Fx Technical
By Mr. Kishore Narne, Head – Currency & Commodities, MOFSL
USD/INR Status: The pair will remain in a positive territory for short-term!
CMP: 74.92, Target: 75.50, Stop Loss: 74.30
Trade: The pair is likely to trade with positive bias in the upcoming trading sessions and dip buying is still
recommended. Strong support is placed at 74.30 whereas short-term target is at 75.50.
EURUSD Status: The pair is likely to trade with negative bias for short-term!
CMP: 1.1840, Target: 1.1675, Stop Loss: 1.2025
Trade: The pair is likely to trade with negative bias in the short-term and selling on rise around 1.1925
is advised targeting 1.1675 mark. But our bias will negate if price break above 1.2025
Commodity Calls:
By Amit Sajeja, VP- Commodities, MOFSL
