ReutersRelated
Analyst: Dharmesh Shah, Head - Technical
The weekly price action formed a bear candle with a long lower shadow, highlighting supportive efforts emerging near the crucial support area of 14,400. Going ahead, we expect the index to trade with a positive bias in the broad range of 14,400-15,000 amid stock-specific action. Since May 2020, there have been three instances of Nifty correcting by 7% to 9%, while the 50-day has acted as a strong support in each of the instances.
In the current scenario as well, Nifty has already corrected by 7% and is forming a higher base around the 50-day EMA. We expect the index to maintain the same rhythm and witness a rebound as risk-reward is favourable. Hence, the current breather should be used as an incremental buying opportunity in quality large and midcap stocks.
Analyst: Dharmesh Shah – Head Technical
| Stock | Reco. | CMP (Rs) | Target (Rs) | Stop Loss (Rs) | Note |
| TCS | Buy | 3,128 | 3,340 | 2,998 | Price sustaining above the recent falling channel breakout area containing last two months’ breather and a higher base above 50-day EMA |
| Divis Labs | Buy | 3,404 | 3,645 | 3,280 | Price rebounding from 50 weeks EMA and the 80% retracement of previous major rally (2,985-3,915), thus provides favourable risk reward set up |
| Adani Ports | Buy | 722 | 790 | 680 | Stock in strong uptrend forming higher peak and trough in all time frame. It has generated a breakout above a falling channel containing last two weeks breather |
F&O Strategy
Analyst: Raj Deepak Singh, Head Derivatives
Buy Bata India
CMP: Rs 1,480
Target: Rs 1,545
Stop loss: Rs 1,455
Rationale:
Covered Call strategy:
Buy Bharti Airtel April Futures at 530-532 and short Bharti Airtel April 560 Call at 12-14
Rationale:
- As the new series is going to start, due to elevated IVs, ATM Straddle of 530 has the highest OI block, which is fetching a good premium. However, for the current month, Bharti has been witnessing closure in OI, whereas no significant OI blocks moved to the next series indicating positive bias.
- Despite closure in OI for the March series, Bharti Airtel has been consolidating above 510 for a couple of sessions. Along with it, delivery pickup was also observed near 520-525 levels.
Sell USD-INR at 72.60-72.65
Target: 72.30
Stop loss: 72.75
Rationale:
- The rupee appreciated last week and started the new week on an optimistic note along with decline in OI, indicating covering.
- As the dollar index again slipped below 92 levels, we feel the current uptrend in the rupee would continue.
| Resistances | 72.70 | 72.80 | 72.90 |
| Supports | 72.50 | 72.40 | 72.30 |
Short GBPINR: Sell GBP-INR at 100.60-100.70
Target: 99.80
Stop loss: 100.95
Rationale:
- GBP-USD is facing supply on the higher side and is finding it difficult to sustain above 1.39 levels.
- Weakness in GBP should continue as the Dollar index is sustaining at higher levels. This should push GBP-INR below 100 levels.
| Supports | 99.70 | 100.00 | 100.20 |
| Resistances | 100.70 | 100.85 | 101.00 |
(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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