Markets

Day trading guide for Thursday’s market

IIFL

Technicals
By Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst

Technical view: Outlook on Nifty Bank
Nifty Bank index gave a strong recovery from its 10day EMA support level of ~23100 and closed the Wednesday’s trade on a strong note.

The index formed a bullish engulfing candlestick on the daily chart and managed to close above its previous swing high, clearly indicating a positive bias.

It’s October future contract has also added fresh long positions during the Wednesday’s. We expect Bank Nifty to trend higher and test our immediate target price of 24,500 during the October series.

Tech Picks

Stock Reco. CMP Target Stop Loss Note
Tata Chemical Buy 318 335 306 Stock has given a bullish Inverse Head & Shoulder breakout on the daily chart.
JSW Energy Buy 60 65 58 Stock has given a triangle pattern breakout above its previous swing top on the daily chart.
HDFC Ltd Buy 1980 2010 1960 Stock has given a consolidation breakout above its 200 DEMA on the daily chart.

F&O Strategy
By Rupak De, Senior Research Analyst

ICICI Bank OCT Future ended the session 2.17 per cent higher. On the daily chart, the price has engulfed the previous day’s bearish move, which is a bullish setup. On the options front, Call writers have shifted their position from 400 strikes to 420 strikes suggesting an expiry at higher prices from current levels.

Trade:
ICICI Bank Bull Call Spread

(Hold till Expiry: 29th Oct 2020)

Buy 1 lot ICICI Bank 29 OCT 410CE at Rs12.10
Sell 1 lot ICICI Bank 29 OCT 420CE at Rs8.30

  • Net Premium outflow Rs 3.80 (appox.)
  • Maximum Loss Rs 3.80/lot (appox.)
  • Maximum Profit 6.2 (appox.)

Futures:
Buy L&T OCT Future at Rs912-918

  • TARGET: Rs 955
  • STOP LOSS: Rs 900

Forex Technical
Amit Pathania, Senior Technical Strategist

USDINR Status: Likely to move lower towards 73 levels
Call for the day: Go short in OCT future around 73.50

  • TARGET: 73
  • STOP LOSS: 73.75

GBPINR Status: Likely to move lower towards 94.20 levels
Call for the day: Go short in OCT future around 95

  • TARGET: 94.20
  • STOP LOSS: 95.40

Commodity Calls
Amit Pathania, Senior Technical Strategist

Commodity Exchange Strategy
Silver (Dec) MCX Sell in the range: 61600-61750
TARGET: 60400/60200
STOP LOSS: 62100
Copper (Oct) MCX Sell in the range 528-529.50
TARGET: 522/520
STOP LOSS: 532.50
Crude Oil (Oct) MCX Buy in the range at 2980-3000
TARGET: 2900/2870
STOP LOSS: 3040

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