Day trading guide for Friday

Kotak Securities

For the last five trading sessions, the market has remained indecisive. Even ahead of the weekly expiry of the index option, it displayed cautious activity. Today, the Nifty has formed an "inside body" formation that generally helps the market to give decisive moves.

On Friday, the trend of US stock futures would be crucial to set the tone of our market. The strategy should be to buy Nifty if it crosses 11,950. In that case, Nifty could move up to 12,050 or 12,100 levels. Shorting is advisable if Nifty breaks 11,770 levels. Support exists at 11,660 and at 11,600 levels. Be stock-specific until the market is not breaking the trading zone, which is hovering between the range of 11,770 and 11,950 levels.

Tech Picks
Shrikant Chouhan, Executive Vice President - Technical Research

TATA Motors: Buy

• CMP: Rs 133.5
• Target: Rs 139
• Stop Loss: Rs 129
• Strong double bottom reversal formation along with bullish candle formation.

HDFC: Buy

• CMP: Rs 2,042.55
• Target: Rs 2,100
• Stop Loss: Rs 2,010
• Stock has formed breakout continuation formation along with higher bottom series formation on intraday charts.

Bajaj Finance: Buy

• CMP: Rs 3,314.45
• Target: Rs 3,410
• Stop Loss: Rs 3,260
• Strong price reversal formation near 200 day SMA indicates high chances of further uptrend from current levels.

L&T: Buy

• CMP: Rs 936.3
• Target: Rs 965
• Stop Loss: Rs 920
• Range breakout formation with modest volume activity clearly suggests further uptrend from current levels.

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

Futures:
Buy DLF Future OCT at Rs 172

• Target: Rs 185
• Stop Loss: Rs 165
• Range Breakout seen above Rs 170 on spot with sector-wide momentum.

Options:
Nifty Bull Call Spread

Buy Oct 11900CE at Rs 118, and Sell 12100CE at Rs 38

• Premium Outflow 80
• Target: Rs 180
• Stop Loss: Rs 30
• Nifty while trending up is presently going through consolidation with strong Support at 11,800. The market breadth is turning positive, which is generally conducive for bullish setups. We expect Nifty to break past the immediate resistance of 12,000 and test 12,100 levels by expiry.

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

USD-INR:

• Sell between 73.80/74.00
• Target: 73.20/10
• Stop Loss: 74.30

Commodity Calls
Ravindra Rao, VP- Head Commodity Research