Clever outlook

Analyst: Chandan Taparia, Derivative and Technical Analyst, MOFSL


The Nifty Index opened positive above 15,700 zones and hit another lifetime high of 15,733 levels in the first half of Friday’s session. However, the second half of the day saw the movement dampen and the index settle in with losses of around 20 points. It formed a small bearish candle daily while a bullish candle with higher highs on the weekly scale. It continues its formation of higher highs – highest lows of the past four weeks. Now it needs to hold above 15,600 areas to see a move up to a new lifetime high of 15,800 and 16,000 areas while on the downside there is support at 15,550 and 15,431 areas.

Stocks (spot levels):

DERIVATIVES
India VIX increased 1.27% from 15.74 to 15.94. The Indian VIX is near its lowest levels of the past 17 months since February 2020 and the decline in the VIX could extend the bullish momentum of the market into new high territory. On the options front, the maximum OI Put is at 15,000 followed by 14,500 strike while the maximum OI Call is at 16,000 followed by 15,500 strike. The minor call entry is seen at 16,000 then 15,700 strike while the Put entry is seen at 15,000 then 15500 strike. The options data suggests a trading range of 15,000-16,000 areas, while an immediate trading range is between 15,500-15,850 areas. Bank Nifty opened slightly positively but underperformed the overall market. He mostly turned south during the day and eventually ended the session with losses of around 360 points. It has formed a bearish candle on the daily scale, but continues its higher highs – the formation of higher lows of the past four weeks. Now it needs to hold above the 35250 areas to witness a bullish move towards the 35750 and 36000 areas while on the downside there is support at the 35000 and 34750 levels.

NIFTY: BULL CALL SPREAD: +15700 CE – 15850 CE (June 10, 2021)

BUY 1 LOT OF 15700 CALL @ 89

SELL 1 LOT OF 15850 CALL @ 35

NET PREMIUM PAID: 54 POINTS

KEEP 14 POINT NET PREMIUM SL: 40 POINT RISK

KEEP THE NET BONUS TARGET OF 145 POINTS: REWARD OF 91 POINTS

REASONING
The main trend is positive and forms higher highs – higher lows and trading in new price territory India VIX maintains a decline with an increase in the sell call ratio suggesting an overall bullish shade in the market The sales writing is intact at lower prices, which could provide support

Effects technique
By Mr. Kishore Narne, Head – Currency and Commodities, MOFSL

USD / INR Status: The pair should trade with a positive bias in the short term!

CMP: 73.16, target: 73.60, stop loss: 72.45


To exchange:
The pair is expected to trade with a positive bias over the next few trading sessions. Buying around 72.95 will be advised targeting the 73.60 area. Our bias will be canceled out in the event of a price break and will remain below 72.45.

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EURUSD Status: The pair should trade in a higher range in the short term!

CMP: 1.2165, target: 1.2300, stop loss: 1.1985

To exchange: The recent rally is likely to continue in the near term and a buy drop around 1.21 is advised for the pair. Strong support is placed at 1.1985 and it should target the 1.23 levels.

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Goods calls:

By Amit Sajeja, Vice President of Commodities, MOFSL

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