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Day trading guide for Friday

Reuters
Nifty has formed a bearish continuation formation.
Kotak Securities

In the past, whenever the market has opened lower on the day of the weekly expiry of contracts, Nifty has closed in the negative territory with a hefty loss. Wednesday’s session saw a similar trend as the benchmark indices closed in red with a loss of over 1 per cent. There was heavy unwinding in long positions of metal stocks, while auto, pharma and midcaps saw selective buying. The index has formed a bearish continuation formation. However, as the market is range-bound, till Nifty/Sensex does not close below the levels of 14,600/48,400, we could do a pullback towards 14,800/49,000 levels. The focus should be on cements, PSU banks and auto stocks if the market remains strong. Buy metal stocks if the market drops to 14,500/48,100 levels.Tech Picks

Analyst: Shrikant Chouhan, Executive Vice President – Technical Research

Hindalco: BUY

CMP: Rs 398.8

Target price: Rs 410

Stop loss: Rs 392

After a reversal formation from its important retracement zone, the stock closed above its 20-day EMA on the daily chart, indicating bullish continuation.

DLF: BUY

CMP: Rs 265.3

Target Price: Rs 275

Stop loss: Rs 260

A breakout from the ascending triangle chart formation is very likely for a fresh-up move in the near term.

ONGC: BUY

CMP: Rs 115.1

Target price: Rs 119

Stop loss: Rs 112

The incremental volume activity in the recent past indicates a strong fresh breakout from the symmetrical triangle chart pattern.

Motherson Sumi: BUY

CMP: Rs 235.9

Target price: Rs 243

Stop loss: Rs 232

The stock is trading in an ascending channel with a higher high and higher low chart formation on the daily chart.

F&O Strategy

Sahaj Agrawal, Head of Research – Derivatives

Futures:

May Futures: BUY at Rs 14,335;

Stop loss: Rs 13,800

Target price: Rs 14,900

Trendline breakout seen above Rs 14,300 on spot.

Options:
Nifty Bull Call Spread: 27 May- SERIES:

Buy 14,700 CE at 230 and Sell 15,000 CE at 100;

Premium Outflow: 130

Stop loss: 60

Target: 250

Nifty trend bullish above 14,400 on spot. With market breadth remaining positive, it can retest 15,000+ levels.

Forex & Interest Rate Technical

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives

USD-INR May Futures: Sell between 73.75/85; stop loss: 74.05; target: 73.30/10

GBP-INR May Futures: Buy between 103.50/103.70; stop loss: 102.80; target: 105.00/105.30

GBP-USD May Futures: Buy between 1.4080/1.4100; stop loss: 1.3970; target: 1.4250/1.4300

Commodity Calls

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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Source: Day trading guide for Friday

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