Day trading guide for Friday's market

Kotak Securities

Nifty: Technically, with the index above the 11794 levels indicates a bullish signal for the market and exhibits strength for the index to rally beyond 12000 levels. However with the market being overstretched, in the short term, a minor correction can’t be ruled out, but that would be an opportunity for investors to create long positions between 11700 and 11650 levels. One needs to keep a stop loss at 11500 for the same. On Friday market would like to take a cue from the monetary policy announcement.

Tech Picks
Shrikant Chouhan, Executive Vice President - Technical Research

Page Industries: Buy
CMP: 20933.45
TARGET: 21560
STOP LOSS: 20610
Stock has formed strong reversal formation near important retracement level.

HCL Tech: Buy
CMP: 849.55
TARGET: 875
STOP LOSS: 835
Stock has formed range breakout pattern along with modest volume activity indicates uptrend likely to continue in the near term.

Hindalco: Buy
CMP: 174.25
TARGET: 180
STOP LOSS: 170
After a strong uptrend stock is consolidating near 20 day SMA. The texture of the stock suggest high chances of fresh uptrend wave from current levels.

Aurobindo Pharma: Buy
CMP: 837.75
TARGET: 865
STOP LOSS: 820
Higher bottom formation on daily and intraday charts along with positive SAR series indicate uptrend wave likely to continue in the short run.

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

Futures:
Buy OCT FUT Dr. Reddy's at: 5230
TARGET: 5500
STOP LOSS: 5070
Bullish Flag Breakout seen on Daily Charts above 5200

Options:
Sell NIFTY OCT 12000CE at: 130
TARGET: 30
STOP LOSS: 180
NIFTY seems to be overstretched in the short-term with overbought readings on the momentum oscillators. The swing length of any upside rally historically has been observed to be at around 9 per cent, post which normally a correction of about 3 per cent-4 per cent is followed. The current setup, where Nifty rallies from 10790 to 11900, satisfies this condition. Further, the participation from the broader market is missing which is also negative.

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

USDINR: November 25th Option structure:

• Buy 73.50 PUT OPTION 25TH NOV
• Sell 72.50 PUT OPTION 25TH NOV
• Sell 74.50 CALL OPTION 25TH NOV
• Total Prepaid Paid: 2 Paise
• STOP LOSS: Exit strategy if USDINR spot trades above 74.50 max profit on strategy: 98 Paise

Commodity Calls
Ravindra Rao, VP- Head Commodity Research