Education

Day trading guide for Monday

NIFTY OUTLOOK

Chandan Taparia, MOFSL

The Nifty index made a gap-down opening on Friday however partially crammed a pending hole made on Feb 2 with assist at 14,350 ranges. Though it moved in a variety within the first half of the day, the second half noticed sturdy optimistic momentum which took the index in direction of the 14,800 zones. It shaped a robust bullish candle on the each day scale and closed the day with a good-looking acquire of 186 factors. It shaped a bullish piercing line sample on the each day scale and reclaimed its 50-double exponential transferring common. Nevertheless, it continued to kind decrease highs however closed on a optimistic observe following a shedding streak that lasted 5 buying and selling classes. Now, it has to decisively maintain above the 14,700 zone to make an upmove in direction of 14,900 and 15,000 zones. On the draw back, speedy assist exists at 14,600, after which 14,450.


STOCKS

ET CONTRIBUTORS



DERIVATIVES

Concern gauge India VIX declined 0.46%, from 20.08 to 19.98. A cooldown in VIX beneath the 20 zone is required for a bullish grip and a smoother transfer available in the market. A decrease VIX with a rising put-call ratio signifies that bulls might get some stability after shedding floor up to now few classes. On the choices entrance, the utmost put open curiosity is on the 14,500 strike, adopted by 14,000, whereas the utmost name open curiosity is at 16,000, adopted by 15,500. Name writing is seen at 15,500, after which 15,600, whereas put writing is seen at 14,500, after which 14,400. Choices information suggests a wider buying and selling vary between the 14,350 and 15,000 zones.

Financial institution Nifty made a niche down opening however bulls had been in a position to present power, pulling the index above the 34,000 mark. It concluded the day with a acquire of 305 factors. Nevertheless, it has been underperforming the Nifty index for the previous few classes. It shaped a bullish candle on the each day scale after a sequence of weak classes. It now has to negate the formation of decrease highs of the final 5 buying and selling classes to draw a brief protecting transfer. It wants to carry above the 34,250 zone to witness a bounce in direction of the 35,000 stage. On the draw back, assist exists at 33,500 and 33,333 zones.

Nifty bull name unfold: +14,800 CE-14,950 CE (Mar 25)

Purchase 1 lot of 14,800 name @ 129

Promote 1 lot of 14,950 name @ 65

New premium paid: 64 factors

Preserve cease lack of internet premium of 25 factors: threat of 39 factors

Preserve goal of internet premium of 140 factors: reward of 76 factors

RATIONALE

A serious pattern is optimistic even after the latest correction, so any declines could possibly be purchased once more. India VIX has cooled down with an increase within the put-call ratio, indicating an total bullish undertone of the market. Put writing is unbroken at decrease strikes, which might present assist.

FOREX TECHNICAL

Kishore Narne, Head – Forex & Commodities, MOFSL

USD/INR standing: A sideways-to-higher transfer appears to be like potential within the quick time period.

CMP: 73.32

Goal: 74.10

Cease loss: 72.75

Commerce: The short-term pattern appears to be like bullish so long as the pair is buying and selling above the assist of 72.75 stage. Shopping for on dips is suggested, focusing on increased resistance at 74.10.

table 1ET CONTRIBUTORS

EUR-USD standing: The short-term pattern stays unfavorable.

CMP: 1.1910

Goal: 1.1780

Cease loss: 1.2010

Commerce: The pair seems to have short-term resistance close to the 1.2010 mark and a fall in direction of the decrease assist of 1.1780 appears to be like possible. Promoting on rallies is suggested.

table 2ET CONTRIBUTORS


COMMODITY CALLS


Amit Sajeja , VP- Commodities, MOFSL

table 3ET CONTRIBUTORS

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