Day trading guide for Tuesday's market

The weekly price action formed a bullish belt hold line candle carrying sizable bull candle with higher high-low, indicating acceleration of upward momentum as the index surpassed our intermediate target of 11,800 and resolved out of the past five weeks trading range (11,794-10,790).

Going ahead, we expect the index to consolidate in the broad range of 12,100-11,500 and form a higher base amid stock-specific activity.

Structurally, the index has completely retraced its 19 session’s decline (11,794-10,790) in just nine sessions.

A faster retracement in less than half the time interval highlights medium-term positive bias in the index

Analyst Name: Dharmesh Shah, Head - Technical, ICICI Securities

F&O Strategy:
Buy Axis Bank

• CMP: 466
• Target: 490
• Stop loss: 450

Rationale:
Buy Bharat Forge

• CMP: 460
• Target: 495
• Stop loss: 445

Rationale:


FX Strategy:

Buy USD-INR

• Buy USD-INR at 73.15-73.25
• Target: 73.65
• Stop loss: 73.00

Rationale:

• The Dollar index found support near 93 levels and witnessed marginal bounce from its support zone of 93.
• This helped INR to revert from its sizable Put base of 73 and we feel the rise in the Dollar index would keep the rupee move in check.

Sell EUR-INR

• Sell EUR-INR at 86.75-86.85
• Target: 86.00
• Stop loss: 87.00

Rationale:

• EURUSD has bounced towards its resistance of 1.18 after moving towards 1.16 levels.
• Weakening of the Euro against all currencies would push EUR-INR pair lower towards the 86 levels.