Nifty: Day trading guide for Friday’s market


Kotak Securities

Stocks retreated sharply after 10 consecutive sessions of gains after a slew of negative news flows from across the globe spooked investors, triggering wide-spread selling. On the day of weekly expiry of index contracts, Nifty and other indices witnessed sharp sell-off.

While Nifty ended 2.52 percent lower, Bank Nifty erased the entire previous session gains to close at 23000 level, which is over 1,000 points fall from the day’s highest level. Today, Nifty failed to follow continuation pattern and that triggered extreme weakness in the market. Nifty is heading towards 10500 on the minimum side.

On the higher side, 11780/11800 would be key hurdles and traders should look for selling short on the Nifty with a final stop loss at 11850.

Tech Picks
Shrikant Chouhan, Executive Vice President – Technical Research

Pidilite Industries: Sell

  • CMP: 1476.45
  • Target: 1430
  • Stop Loss: 1500
  • Strong Bar Reversal formation on daily charts suggest high chances of further weakness from current levels.

Hero Moto Corp: Sell

  • CMP: 3314.3
  • Target: 3210
  • Stop Loss: 3360
  • Double top pattern and Hammer reversal formation indicates high chances of short term correction.

Axis Bank: Sell

  • CMP: 462.6
  • Target: 445
  • Stop Loss: 470
  • Strong reversal formation near important retracement level along with overbought stochastic cycle.

Tech Mahindra: Buy

  • CMP: 812.4
  • Target: 840
  • Stop Loss: 800
  • Post strong uptrend rally currently stock is witnessing short term correction. Currently trading near important support level. The texture indicates high chances of fresh uptrend wave from current levels.

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


Futures:
Buy OCT FUT Biocon at 430

  • Target: 470
  • Stop Loss: 410
  • Trend Line Support seen on Daily Charts at 430

Options:
Short Strangle

Sell NIFTY OCT 12000CE at 55
Sell OCT 11400PE at 90

  • Premium Inflow: 145
  • Target: 40
  • Stop Loss: 200
  • Nifty is expected to remain in a range between its immediate resistance at around 12050 & the support area of 11400 in the near term. A Short Strangle is apt.

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


USDINR: Sell between 73.80/90

  • Target: 73.10/72.80
  • Stop Loss: 74.30

Commodity Calls
Ravindra Rao, VP- Head Commodity Research

Commodity Exchange Strategy
Silver (Dec) MCX Sell at 62000/62200
Target: 59600/59400
Stop Loss: 63000
Crude Oil (Oct) MCX Sell at 3030/3050
Target: 2880/2850
Stop Loss: 3100
Copper (Oct) MCX Sell at 527/528
Target: 519/517
Stop Loss: 531
Soybean (Nov) NCDEX Buy at 4080/4050
Target: 4200/4250
Stop Loss: 4000





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