Day trading guide: Nifty holding ground, could revisit 12,000

Amit Trivedi, YES Securities

Nifty rallied for the third straight session, making high near 11,950 in today’s trade; mild profit taking was visible from higher levels. However, during the intraday decline, it defended the session low. Massive additions are visible at 11,900 call and 11,900 put strikes for the current weekly expiry. It represents that traders are not expecting any major move on either side. Technically, levels of 11,750 could act as an immediate floor, while on the higher side, it could revisit 12,000.

Holding ground above 24,000, Bank Nifty continued to trend higher. It ended above the September month peak for the consecutive session. Positive follow-up action could lift Bank Nifty higher till 24,800-25,000 zone.

Stock Futures
Buy Tech Mahindra October future near Rs 840-845

• Stop loss: Rs 821
• Target: Rs 885
• Series of ascending tops and bottoms on short term and medium term charts remain intact. During recent decline, renewed buying interest emerged near the Rs 800 zone. Swift reversal in the past few days could mean resumption of the uptrend.

Buy Dabur October future near Rs 527-530

• Stop loss: Rs 519
• Target: Rs 550
• Bouncing off the support zone, Dabur is relatively holding ground. Ongoing outperformance of the stock is likely to continue, while a northbound journey at uncharted is likely to continue.

Stock Options
Buy SBI October Rs 205 strike call near 4.5-5

• Stop loss: 1.5
• Target: 11
• The stock is gradually gaining traction on the upside. Sharp up move from the recent low of Rs 191.60 ensures a shift of range on the upside. Sustenance above Rs 200 could lift the stock higher till Rs 220 zone.

(Amit Trivedi is Technical Analyst - Institutional Equities, YES Securities. Views are his own)