Day trading guide for Thursday

IIFL

Technicals: By Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst

Technical view: Outlook on Nifty
Nifty index witnessed a strong momentum during the Wednesday’s trade with the index futures continuing to add fresh long positions. The index is currently trading in a superstructure Wave 3 phase of the Elliot theory. As the overall structure continues to remain in the favor of bulls, we expect the index to continue its current impulse move up to our eventual target price of ~13,400 by the end of 2020.

Tech Picks

F&O Strategy
(Rupak De, Senior Research Analyst)

Tata Steel ended the session higher. On the daily chart, the price has moved above its previous swing high. On the options front, OTM call writers have covered their position, suggesting an expiry at higher level.

Trade: Tata Steel Bull Call Spread
(Hold till expiry: 26 th Nov 2020)

Buy 1 lot Tata Steel 26 Nov 520CE at Rs12,
Sell 1 lot Tata Steel 26 Nov 530CE at Rs9.70

• Net premium outflow: Rs 2.3/lot(appx)
• Maximum loss: Rs 7.7/lot(appx)
• Maximum profit: Rs 7.7/lot (appx)

Futures:
Sell UPL Nov Future at Rs 427-430

• Stop loss: Rs.436
• Target: Rs.410

Commodity Calls
(Rupak De, Senior Research Analyst)

Forex Technical
(Rupak De, Senior Research Analyst)

USDINR Status: Likely to move towards 73.50 levels

• Call for the day: Go Short in Nov future around 74.70
• Target: 73.50
• Stop loss: 75

GBPINR Status: Likely to move towards 99.50 levels

• Call for the day: Go long in Nov future around 98.50
• Target: 99.5
• Stop loss: 98