Day trading guide for Friday

Kotak Securities

Weak US and Asian markets dragged the Indian market lower on Thursday with the Nifty50 index slipping below the 13,400 levels. Selling in Bank Nifty added to the fall. However, buying in FMCG heavyweights like ITC, HUL, Nestle and Britannia helped the market recover from its lower levels. The chart indicates a reversal formation in the Nifty50 index that has been formed after hitting the lows of 13,400.

However, if the Nifty50 index has to scale new highs, it needs to sustain a move above 13,530 levels. Meanwhile, on an immediate basis, 13,600 and 13,660 would be barriers for the index. A break of 13,380 would be negative for the market, which could see the Nifty50 index revisit the 13,250 levels. For the market to scale higher, Bank Nifty need to move above the 31,000 levels and move beyond to 32,613 levels, which is also its all-time high

Tech Picks
Analyst: Shrikant Chouhan, Executive Vice President - Technical Research

Britannia: BUY

• CMP: Rs 3,739.75
• Target: Rs 3,850
• Stop loss: Rs 3,680
• Trend line breakout formation supported by modest volume activity

Tata Steel: BUY

• CMP: Rs 610.1
• Target: Rs 630
• Stop loss: Rs 600
• A series of higher high and higher bottom formation and strong reversal formation on intraday charts

BPCL: BUY

• CMP: Rs 399.3
• Target: Rs 415
• Stop loss: Rs 390
• Promising higher bottom formation along Bar Reversal candlestick formatio

HDFC Life: BUY

• CMP: Rs 659.45
• Target: Rs 680
• Stop loss: Rs 649
• Post short-term correction, the stock is consolidating in the range of Rs 640-660. Higher bottom on intraday charts suggest high chances of fresh uptrend from current levels.

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

Futures:
BUY Infosys Future DEC @ 1,170

• Stop loss: Rs 1,130
• Target: Rs 1,220
• Range breakout seen above 1,160 on spot.

Options:
Nifty Short Strangle: Sell 31 Dec 13,000 PE @ 60 and Sell 31 Dec 14,000 CE @40

• Premium Inflow: 100
• Stop loss: 140
• Target: 20

Nifty has been trending positively after it made a low of 11,535 on 30 Oct. So far, we have already seen a rally of 17% from the swing low (without any meaningful correction) while it made an all-time high of 13,548. However, currently the data looks slightly overstretched and a consolidation between 13,100 and 13,800 is the most likely scenario going ahead. In this situation, a Short Strangle is apt.

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

USD-INR: Sell Dec futures between 74.00/20

• Target: 73.50/20
• Stop loss: 74.45

Commodity Calls
Analyst: Ravindra Rao, VP- Head Commodity Research