Day trading guide for Thursday

IIFL Securities

Technical view: Outlook on Nifty Bank
Analyst: Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst

Nifty Bank index witnessed a positive day of trade during the Wednesday’s session and is trading in a strong higher top higher bottom chart structure. Majority of its constituents have added continued long positions during the January series, indicating a positive bias. During the first week of the January series, the MACD histogram has re-entered into the positive territory after a gap of near 2-months, hinting a rising strength in the current rally. We expect the index to gradually move higher up to its life-time high level of 32,613 during the January series.


Tech Picks

Stock	Reco.	CMP (Rs)	Target (Rs)	Stop Loss (Rs)	Note
IDFC First Bank	Buy	41.4	44	40	Stock has given a Golden Crossover (89/200Dema), breakout on the daily chart & has added fresh long positions on the derivative front.
Emami Ltd	Buy	450	470	435	Stock has given a Flag pattern breakout on the daily chart.
Shree Cement	Buy	24,824	26,000	24,000	Stock has given a Triangle pattern breakout on the daily chart.

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

Nifty consolidated for the day after rallying in the previous session. The momentum indicator is having a negative divergence, suggesting a possible pause in the rally. On the option front, call writers have a strong built up at 14,200 strike price, whereas put writers have a strong built up at 13,800 strike price, suggesting weekly expiry within the range.

Trade: Bank Nifty Short Call Butterfly (Intraday)

• Sell 1 lot Bank Nifty 07 Jan 31,600 CE @ Rs 264
• Buy 2 lot Bank Nifty 07 Jan 31,800 CE @ Rs 150
• Sell 1 lot Bank Nifty 07 Jan 32,000 CE @ Rs74
• Net Premium outflow: Rs38/lot (approx)
• Maximum Loss: Rs38/lot (approx)
• Maximum Profit: Rs 162/lot (approx)

Futures:
Buy ACC Jan Future at Rs 1,680-1,685

• Stop Loss: Rs 1,667
• Target: Rs 1,746.

Commodity Calls
Analyst: Rupak De, Senior Research Analyst

Commodity	Exchange	Strategy
Gold (Feb)	MCX	Buy in range of Rs 51,500-51,600 SL Below Rs 51,350 TGT: Rs 51,800/52,000
Crude Oil (Jan)	MCX	Buy in range Rs 3,600-3,620 SL: Rs 3,560 Target: Rs 3,670/3,700
Copper (Jan)	MCX	Buy in the range Rs 615-618 SL: Rs 610 Target: Rs 626/632

FX Technical
(Rupak De, Senior Research Analyst)

USD/INR Status: Likely to move towards 72.60 levels
Call for the day: Go short in Jan future around 73.20

• Target: 72.60
• Stop Loss: 73.50

EUR/INR Status: Likely to move towards 91 levels
Call for the day: Go long in Jan future around 90

• Target: 91
• Stop Loss: 89.54