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Day trading guide for Friday

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Day trading guide for Friday

Kotak Securities


After a calm first half with the market steadily moving upwards, it turned tide in the latter part of the trading session becoming equally volatile and to fall below the psychological support level of 14,900. On the daily chart, the Nifty has formed a bullish continuation pattern.

However, it should not break the level of 14,770. Otherwise, it would re-test the level of 14,650. At the top, 14,920 and 15,020 would be major obstacles. After the dismissal of 15,020, the Nifty would move to the level of 15,150. Trading long with a final stop loss at 14,770 could be the ideal strategy. The Indian rupee fell to 74.75 levels, which is negative if it continues for the next few days.

Tech Picks

Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

Dalmia Bharat: BUY
CMP: Rs 1,559.15

Target: Rs 1,610

Stop loss: Rs 1,535

Post a strong rally, the stock is trading in a triangle formation and 20-day EMA is acting as good support for upward movement in the coming sessions.

Tata Power: BUY
CMP: Rs 104.95

Target: Rs 110

Stop loss: Rs 101

The stock is trading in an ascending triangle chart pattern with decent volume activity, which points out for a breakout on the daily chart.

BPCL: BUY
CMP: Rs 430.55

Target: Rs 450

Stop loss: Rs 420

The stock is trading in an ascending channel pattern and an inverted hammer candlestick formation, which indicates a bullish momentum in the near term.

IRCTC: BUY

CMP: Rs 1,726.4

Target: Rs 1,780

Stop loss: Rs 1,700

Post correction, a good base is formed with rising volume in the demand zone of the counter. Hence, a strong bullish reversal is very likely in the near future.

F&O Strategy

Analyst: Sahaj Agrawal, Head of Research- Derivatives

Futures: Buy Wipro Futures – April at 445
SL: 425

Target: 470

Falling Channel breakout seen above 430 on spot.

Options: Nifty Bull Call Spread: 29 Apr-21 Series:

Buy 15,000 CE at 240 and Sell 15,300 CE at 110
Premium Outflow: 130

SL: 70

Target: 250,300

The Nifty is expected to trade positively above 14,700 levels. The market breadth has also gained strength, which can propel Nifty towards 15,100 levels over next few weeks. In this situation, a Bull Call spread is apt.

Forex & Interest Rate Technical

Analyst: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives

USD-INR: Buy between 74.10/30
SL: 73.90

Target: 75.00/75.20

Commodity Calls

Analyst: Ravindra Rao, VP- Head Commodity Research

Commodity Exchange Strategy (Figures in Rs)
Gold (June) MCX Buy at 46300/46250; TP: 46900/47000; SL: 46000
Crude Oil (Apr) MCX Buy at 4350/4320; TP: 4510/4520; SL: 4240
Zinc (Apr) MCX Buy at 228.5/228; TP: 231.8/232.5; SL: 226
Soybean (May) NCDEX Buy at 6300/6280; TP: 6430/6450; SL: 6220

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