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