Technical view: Outlook on Nifty Bank
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst
Nifty Bank index witnessed a positive day of trade during the Wednesday’s session and is trading in a strong higher top higher bottom chart structure. Majority of its constituents have added continued long positions during the January series, indicating a positive bias. During the first week of the January series, the MACD histogram has re-entered into the positive territory after a gap of near 2-months, hinting a rising strength in the current rally. We expect the index to gradually move higher up to its life-time high level of 32,613 during the January series.
Tech Picks
| Stock | Reco. | CMP (Rs) | Target (Rs) | Stop Loss (Rs) | Note |
| IDFC First Bank | Buy | 41.4 | 44 | 40 | Stock has given a Golden Crossover (89/200Dema), breakout on the daily chart & has added fresh long positions on the derivative front. |
| Emami Ltd | Buy | 450 | 470 | 435 | Stock has given a Flag pattern breakout on the daily chart. |
| Shree Cement | Buy | 24,824 | 26,000 | 24,000 | Stock has given a Triangle pattern breakout on the daily chart. |
F&O Strategy
Analyst: Rupak De, Senior Research Analyst
Nifty consolidated for the day after rallying in the previous session. The momentum indicator is having a negative divergence, suggesting a possible pause in the rally. On the option front, call writers have a strong built up at 14,200 strike price, whereas put writers have a strong built up at 13,800 strike price, suggesting weekly expiry within the range.
Trade: Bank Nifty Short Call Butterfly (Intraday)
- Sell 1 lot Bank Nifty 07 Jan 31,600 CE @ Rs 264
- Buy 2 lot Bank Nifty 07 Jan 31,800 CE @ Rs 150
- Sell 1 lot Bank Nifty 07 Jan 32,000 CE @ Rs74
- Net Premium outflow: Rs38/lot (approx)
- Maximum Loss: Rs38/lot (approx)
- Maximum Profit: Rs 162/lot (approx)
Buy ACC Jan Future at Rs 1,680-1,685
- Stop Loss: Rs 1,667
- Target: Rs 1,746.
Analyst: Rupak De, Senior Research Analyst
| Commodity | Exchange | Strategy |
| Gold (Feb) | MCX | Buy in range of Rs 51,500-51,600 SL Below Rs 51,350 TGT: Rs 51,800/52,000 |
| Crude Oil (Jan) | MCX | Buy in range Rs 3,600-3,620 SL: Rs 3,560 Target: Rs 3,670/3,700 |
| Copper (Jan) | MCX | Buy in the range Rs 615-618 SL: Rs 610 Target: Rs 626/632 |
FX Technical
(Rupak De, Senior Research Analyst)
USD/INR Status: Likely to move towards 72.60 levels
Call for the day: Go short in Jan future around 73.20
- Target: 72.60
- Stop Loss: 73.50
Call for the day: Go long in Jan future around 90
- Target: 91
- Stop Loss: 89.54
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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