Day trading guide for Friday

Due to the rebalancing of the FTSE index, the market remained heavily volatile on the day of monthly expiry of the F&O contracts. The Nifty once again gave buyers the opportunity to buy on dips. The Nifty bounced from 15,280 to 15,380 in a row. The 15,430 level is the previous highest and as of today's formation, Nifty/Sensex bounced from 15,280/50,475 to 15,380/50,960 in a row. The 15,430/51,500 level is the previous highest and as of today's formation, Nifty can show levels of 15,430/51,500 or 15,500/51,750.

As the market has created a long legged Doji, the Nifty will be even more volatile. The 15,250/50,900 /15,100/50,500 range would be an excellent support in the coming expiry. If 15,430/51,500 is easily crossed, then we can see the level of 16,000/53,000 (positional target) in the coming expiry. In that comparison, Bank Nifty can show the level of 36,500.

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

Sun Pharma: BUY
CMP: Rs 699.5
Target: Rs 720
Stop loss: Rs 688
The stock is into an uptrend, forming higher lows and trading above 10-day EMA with the rising volume on the daily chart.

UltraTech

Cement: BUY
CMP: Rs 6,673.25
Target: Rs 6,880
Stop loss: Rs 6,570
A breakout from the Ascending Triangle chart pattern indicates a fresh leg of upside from the current levels.

BPCL: BUY
CMP: Rs 467.85
Target: Rs 480
Stop loss: Rs 460
Strong reversal formation from its important support zone of intraday charts hints at bullish continuation formation to continue in the counter.

ICICI Bank: BUY
CMP: Rs 652.25
Target: Rs 672
Stop loss: Rs 642
The stock is into a rising channel pattern, forming Higher High and Higher low series along with decent volume activity on the daily scale.

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

Futures: Buy HeroMoto futures-June at 3020
SL: 2,900
Target: 3,200
Range breakout seen on daily charts above 3,000.

Options: Nifty Short Strangle for 3June 2021 Series
Sell 15,000 PE at 25 and Sell 15,600 CE at 40
Premium Inflow: 65
Stop loss: 95
Target: 20
The Nifty so far has been trending strongly and the May series ended on a high note. However, over the next few days, the Nifty is expected to trade sideways between its immediate demand-supply zone of 15,000 and 15,600 respectively. In this situation, a Short Strangle is apt.

Forex & Interest Rate Technical
Analyst: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives
USD-INR: Buy between 72.25/35
Target: 73.00/73.20
Stop loss: 72.00

Commodity Calls
Analyst: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

ET CONTRIBUTORS