|Stock||Recommendation||Current market price||Target||Stop||Remarks|
|SRF||Buy||5917||6035||5800||The stock gave a breakout on the daily scale and has been forming higher highs on the weekly frame.|
|Sun Pharma||Buy||74||81||71||The stock has given a breakout on daily and weekly scales, and a crossover of the 50-DMA over its 200-DMA.|
|Equitas||Buy||620||650||605||The stock has given a breakout from its range on the daily chart and surpassed its previous hurdle.|
|McDowell’s||Buy||630||660||615||The stock has given a breakout on the weekly scale and looks for an upside once it surpasses the 645 zone.|
The India VIX index was up a marginal 0.10 per cent, from 20.62 to 20.64 levels. Volatility needs to cool down below the 20 zone to support the bullish market setup and fuel the next rally with a higher market base. The Bank Nifty index also made a gap-up opening near 32,300 but could not sustain at higher levels, and slipped. It formed a bearish candle on the daily scale as it closed lower than its opening levels. However, it continues its higher highs from the last five trading sessions. Now, it has to continue to hold above the 31,750 levels to make an upmove towards the 32,500-32613 zone. Support exists at 31,500 and 31,200 zones on the downside.
NIFTY options strategy
Bull Call spread: 14,350 CE – 14,500 CE (January 14th, weekly expiry)
Buy 1 lot of 14,350 Call @ 109
Sell 1 lot of 14,500 Call @ 42
Net premium paid: 67 points
Keep a stop loss of net premium of 25 points: Risk of 42 points
Keep a target price of net premium of 140 points: Reward of 73 points
Rationale The Nifty index has been witnessing buying interest at every small decline and heading towards a new life-time high territory.
The India VIX index has risen marginally but indicates a tight bull grip in the market.
The Pu-Call ratio has increased with Put writing at immediate strikes.
Kishore Narne, head – currency and commodities, MOFSL:
USD/INR Status: A sideways-to-lower move looks possible for the pair in the short term.
Stop loss: 73.95
Trade: The short-term trend looks bearish as long as the pair is trading below the resistance of 73.95….
Go to the news source: Day trading guide for Monday’s session