Day trading guide for Thursday

IIFL Securities

Technical view
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst

Outlook on Nifty
The Nifty index witnessed a sharp selloff during the Wednesday’s trade with the index futures witnessing long unwinding ahead of the November expiry. The index has formed a bearish belt hold candlestick pattern engulfing the entire candle body of the previous two trading sessions, indicating a possible short-term reversal. We expect the index to retrace back up to its immediate support level of 12,750 during today’s trading session.


Tech Picks

Stock	Reco.	CMP	Target	Stop Loss	Note
AIA Engineering	Buy	1,926	2,000	1,870	Stock has given a consolidation breakout on the daily chart.
UPL	Sell (Dec Fut)	420	410	427	Stock is carrying short positions throughout the series.
HDFC AMC	Buy	2,513	2,600	2,450	Stock has given a bullish flag pattern breakout on the daily chart.

F&O Strategy
Analyst: Rupak De, Senior Research Analyst

Trade: Dr Reddy Put Spread
(Hold till expiry: 26th Nov 2020)

• Buy 1 lot Dr Reddy 26 Nov 4,800 PE at Rs 32
• Sell 1 lot Dr Reddy 26 Nov 4750 PE at Rs 16
• Net Premium outflow: Rs 16/lot (approx)
• Maximum Loss: Rs 16/lot (approx)
• Maximum Profit: Rs 34/lot (approx)
• Dr Reddy ended the session lower. On the daily chart, the price has formed a bearish engulfing pattern. On the options front, Put writers have cut their position in heavy volume, which suggests an expiry close at the lower levels.

Futures:
Buy Siemens Nov Future at Rs 1,365-1,370

• Stop Loss: Rs 1,386
• Target: Rs 1,326.

Commodity Calls
Analyst: Rupak De, Senior Research Analyst

Commodity	Exchange	Strategy
Gold (Feb)	MCX	Buy in range Rs 48200-48000 Stop loss: below 47,900 Target: Rs 48,500/48,700
Crude Oil (Dec)	MCX	Buy in range Rs 3,200-3,210 Stop loss: 3,140 Target: 3300/3360
Copper (Dec)	MCX	Buy in the range Rs 556-558 Stop loss: Rs 553 Target: 563/567

Forex Technical
Analyst: Rupak De, Senior Research Analyst

USDINR Status: Likely to move towards 73.00 levels

• Call for the day: Go Short in Dec future around 74.10
• Target: 73.00
• Stop loss: 74.5

GBPINR Status: Likely to move towards 99.50 levels

• Call for the day: Go long in Dec future around 98.50
• Target: 99.5
• Stop loss: 98