Day trading guide for Thursday

IIFL Securities

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

The Nifty index is trading in a strong higher top higher bottom chart structure and has retraced ~100% of its previous down-move in the last three trading sessions. The ADX index is showing good strength with the +DI line trending above the Avg DI and -DI line. As the majority of its constituents have witnessed long additions since the start of the February series. We recommend traders to implement a buy on dips strategy in the index around its immediate support level of 14,600. We expect the index to continue its northbound journey up to 15,200 during the February series.

Stock
Reco.
CMP
Target
Stop Loss
Note

PNB
Buy
38.35
42
36
Stock has given a consolidation breakout with an uptick in the volume on the daily chart.

Deepak Nitrite
Buy
1050
1125
1010
Stock has given a flag pattern breakout on the daily chart.

Care Ratings
Buy
520
550
500
Stock has given a golden crossover (89/200DEMA) on the daily chart.

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

The price of has moved above the recent consolidation on the weekly chart, which suggests a rise in optimism. On the higher end, there is a consolidation high around Rs 765. The momentum indicator RSI is in a positive crossover. On the option front, call writers have shed some position in the strikes of Rs 740 and Rs 750, indicating a possible closing above Rs 750 on expiry.

Trade: Hold till expiry: 25 Feb 2021

Buy 1 lot Axis Bank 25 Feb 750 CE @ Rs 19.7
Sell 1 lot Axis Bank 25 Feb 760 CE @ Rs 16.15
Net Premium outflow: Rs3.55/lot (debit/approx)
Maximum loss: Rs 3.55/lot (approx)
Maximum profit: Rs.6.45/lot (approx).

Futures:
Buy Hero Moto Feb Future at Rs 3,350-3,360

Stop loss: Rs 3,297
Target: Rs 3,480