Nifty has entered into a topping zone of 15,200-15,500 as indicated by channel projection and fibonacci extensions. Also, a shooting star pattern on the daily chart along with negative divergence suggests a short-term reversal. Thus, within the mentioned zone, we expect the index to remain extremely volatile.
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Parag Shah, Technical Analyst, Research, Edelweiss Wealth Management
CMP: Rs 556.80
Target: Rs 590
Stop loss: Rs 540
After completing its first round of correction and forming a base around Rs 510-500 levels,
has given a swing breakout as it breached its resistance of Rs 560. Volumes registered on breakout are above average, suggesting strong hands have entered the stock.
SBI Life: BUY
CMP: Rs 888.70
Target: Rs 950
Stop loss: Rs 860
SBI Life has taken support at the previous mini swing bottom. It has also formed a higher swing low. Stock has also seen a positive divergence with RSI.
CMP: Rs 841.75
Target: Rs 900
Stop loss: Rs 819
Cipla has given a pullback after forming a base around the Rs 800 levels. It has also given a follow through swing breakout. This move has ensured that shorts have been trapped at lower levels. A close above Rs 860 would give further momentum.
Mcdowell (Feb): BUY
CMP: Rs 569.80
Target: Rs 510
Stop loss: Rs 590
Mcdowell failed to continue the upside momentum once it closed above Rs 646. The sharp move on the downside ensured that the bulls were trapped at higher levels. Recent moves could be seen as a follow through to the sharp falls ensuring momentum could be on the downside.
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management
FII stance continues to remain bullish on indices. Their net position stands at 33,000 long contracts. Also in the cash market, they are buyers to the tune of 15,000 crore. In the month of Feb, which is higher compared to the January figure (9k crore). With the weakening dollar, we expect strong FII flows to continue.
On the options front, 15,000 strike will be the key support on the downside for Nifty. This strike has maximum put open interest. On the upside, resistance will come at 15,300.
Actionable: Sell Nifty 15,000 Straddle at a current spread of 225. Buy Nifty 15,300 CE @ 22 and 14,700 PE @ 17 Net spread: 180
Analyst: Munjaal Raval, Technical Analyst, Research, Forex & Rates, Edelweiss Wealth
USD-INR Status: USDINR is approaching its lower band of the range, which is placed near 72.75.
Current Spot: 72.89
Call for the day: Buy on dips around 72.75
Stop Loss: 72.45
GBPUSD Status: GBP-USD continues with its upward momentum
Current Spot: 1.37740
Call for the day: Buy on dips around 1.37
Stop Loss: 1.3550
Analyst: Ankit Narshana, Commodity Analyst, Research, Edelweiss Wealth Management
- Buy copper on dips around 616; target: 630; stop loss: 611
- Buy MCX Gold above 48450; target: 49200; stop loss: 48000
- Buy MCX silver above 71000; target: 73500; stop loss: 70400