Nifty: Day trading guide for Tuesday’s market


ICICI Securities

Analyst Name: Dharmesh Shah – Head Technical

The weekly price action formed a small bear candle, indicating breather after past two weeks sharp up move of more than 1200 points. In the coming week, we expect the index to consolidate in the broad range of 11700-12000 with a stock specific action amid progression of Q2FY21 result season.

We believe the broader market indices have approached its maturity of price wise and time wise correction. As seen since 2009, post a sharp up move (more than 25 per cent) in the Nifty midcap and small cap indices, the intermediate average correction is to the tune of 12-15 per cent.

Whereas, time wise they undergo five to six weeks correction. In the current scenario, both indices have corrected 10 per cent over past seven weeks while forming higher base above the 50 days EMA. We advice investor should start accumulating quality midcap stocks in a staggered way.

Analyst Name
Dharmesh Shah – Head Technical

Stock Reco. CMP Target Stop Loss Note
HDFC Bank Buy 1202 1305 1155 Price breakout above the last three months consolidation range (1158-993) and a faster retracement of the last falling segment
Pidilite Industries Buy 1533 1645 1468 Stock is at the cusp of breakout above the last seven months consolidation range (1530-1310) and MACD in buy mode
Voltas Buy 689 750 654 Placed at the upper band of the last one month’s consolidation (700-640) and a higher base at the 50 days EMA

F&O Strategy
Analyst Name: Raj Deepak Singh


Buy HDFC Bank

  • CMP: 1203
  • Target: 1260
  • Stop loss: 1172

Rationale:

  • HDFC Bank witnessed some profit booking after its quarterly results as Bank Nifty recovered above 24000 levels once again. The current OI in HDFC Bank is lowest in two months as open interest declined sharply in last few sessions. We believe the positive trend in the stock to continue in the near term.
  • Moreover, HDFC Bank was managed to move above its sizeable Call base of 1200. We believe that further up move is likely to be seen due to short covering in the coming sessions

Buy DLF

  • CMP: 165
  • Target: 180
  • Stop loss: 155

Rationale:

  • In the current leg of the consolidation, the stock saw a pick-up in long positions. At the same time, it managed to sustain above its sizeable Call base of 160 where writing OI was seen. We believe this could be a positive trigger for the stock, which will push it higher towards 180.
  • Closure was seen in Call base of 160 and the OI moved to 175 and 180 strike Calls, which should be potential targets in the short term. Put writers of 155 strike are likely to provide cushion in case of reversal from higher levels

Forex Strategy
Analyst Name: Raj Deepak Singh

Sell USDINR

  • Sell USDINR at 73.55 – 73.60
  • Target: 73.15
  • Stop loss: 73.75

Rationale:

  • Dollar index reverted from 93.9 levels due to which appreciation could be seen in INR.
  • Positive domestic equities and writing in OTM strike Calls are likely to keep USDINR pair move in check.
Resistance 73.55 73.65 73.75
Support 73.20 73.10 73.00

Sell GBPINR

  • Sell GBPINR at 95.65-95.75
  • Target: 94.6
  • Stop loss: 96.00

Rationale:

  • Focus has shifted on hard Brexit post which GBPUSD fell lower.
  • INR is likely to appreciate against Dollar and due to uncertainty over Brexit, Pound is unlikely to appreciate.
Resistance 95.70 95.85 96.00
Support 95.10 94.80 94.60





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