Day trading guide: 4 stock recommendations for Friday


Kotak Securities

Nifty

Hammer candlestick formation adopted by inside physique candles clearly point out indecisiveness between the bulls and the bear. However, the medium-term texture of the market continues to be on the bullish aspect, however the each day and the intraday charts counsel that the uptrend could take a brief pause close to 14,620. If the index sustains above the identical continuation of uptrend, it is going to proceed to move in the direction of 14,700 -14,775. On the flip aspect, trading beneath 14,500 might set off fast short-term correction as much as 14,350-13,250.

Tech Picks
Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

HDFC Bank: BUY

  • CMP: Rs 1,468.75
  • Target: Rs 1,515
  • Stop loss: Rs 1,440
  • The stock has given a breakout from rectangle formation on the each day and weekly charts.

Tata Steel: BUY

  • CMP: Rs 706.35
  • Target: Rs 727
  • Stop loss: Rs 695
  • Strong breakout continuation formation prone to proceed within the close to time period.

Muthoot Finance: BUY

  • CMP: Rs 1,251
  • Target: Rs 1,290
  • Stop loss: Rs 1,232
  • The stock is trading above short-term averages with sturdy greater backside formation on the each day charts.

Siemens: BUY

  • CMP: Rs 1,651.15
  • Target: Rs 1,700
  • Stop loss: Rs 1,620
  • Strong Bar Reversal formation together with optimistic Parabolic SAR sequence counsel uptrend anticipated to proceed within the close to time period.

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

Futures: Buy ITC Future Jan at 214

  • Stop loss: Rs 208
  • Target: Rs 230
  • Range breakout seen above 213 on spot.

Options: Nifty Short Strangle

  • Sell 21 Jan 14,950 CE at 22 and Sell 21 Jan 14,200 PE at 32
  • Premium Inflow (Max Profit): 54
  • SL: 80

The Nifty for the previous few weeks has been trending fairly strongly whereas it made an all-time excessive of 14,653. However, the variety of shares in UpTrend is decreasing step by step from the NSE 200 basket inkling a consolidation/vary certain exercise going forward. Based on the present ATM IV of round 17%, a probabilistic (70%) vary for Nifty until 21 Jan ought to be between 14,250 and 14,950. In this case, a Short Strangle could also be initiated.

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

USD-INR: Feb 24 expiry.

  • Buy 73.50 Put choice
  • Sell 72.50 Put choice and promote 74.00 Call choice
  • Equal amount on all legs.
  • Total Premium paid: 14 paise
  • Max revenue: 86 paise
  • Stop Exit technique if USD-INR trades above 74.00 ranges.

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

Commodity

Exchange Strategy
Gold (Feb) MCX Sell at 49200/49300
TP: 48600/48400
SL: 49700
Crude Oil (Jan) MCX Sell at 3920/3940
TP: 3800/3760
SL: 3980
Copper (Jan) MCX Sell at 614/615
TP: 605/603
SL: 618
Soybean (Feb) NCDEX Buy at 4600/4580
TP: 4700/4730
SL: 4540





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *