Day trading guide for Thursday

IIFL Securities

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

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)

Futures:
Buy ACC Jan Future at Rs 1,680-1,685

• Stop Loss: Rs 1,667
• Target: Rs 1,746.

Commodity Calls
Analyst: Rupak De, Senior Research Analyst

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

EUR/INR Status: Likely to move towards 91 levels
Call for the day: Go long in Jan future around 90

• Target: 91
• Stop Loss: 89.54