Business & Investment

Stock Day Trading: Tuesday Day Trading Guide

ICICI Securities

Analyst: Dharmesh Shah – Head Technical

Weekly price behavior has formed high-wave candles, indicating increasing volatility as the index continues to integrate over a wide range of 14m250-14,800 over the past five weeks.Despite the gap down opening on Monday, the index managed to keep the band below. Integration It will be placed at 14,250 on a closing base. In the upcoming truncated weeks, only definitive violations of the integration range of 14,250-14,800 over the last five weeks will show a directional move. Otherwise, the consolidation is expected to be extended in a stock-specific action.

Analyst: Dharmesh Shah – Head Technical

stock Reco. CMP (Rs) Target (Rs) Stop loss (Rs) Note
TCS Purchase 3,164 3,354 3,045 Therefore, higher base formation in the 50-day EMA and lower bands in the ascending channel, which have taken place since September 2020, offer favorable risk reward settings.
Cipla Purchase 950 1,025 905 Uptrend line added to record highs since August 2020 Lines Strong uptrend stocks and buy mode MACDs that persist beyond the breakout area
Graphite India Purchase 629 695 590 Shallow retracement and higher base with 61.8% retracement of previous ascending movement (482-740)

F & O strategy

Analyst: Raj Deepak Singh, Head-Derivatives

SBI LIFE: Protective Put Strategy

Long SBI Life April Futures on 906-908 and Long April 900 Puts on 911

the goal: 980

Stop loss: 875

The rationale:
a) Life insurance stocks are under selling pressure due to recent market revisions. However, SBI LIFE has shown great resilience to the market, mainly above the 875 level. We believe stocks could witness a new rise towards Rs 1,000 in the coming days.

b) SBI LIFE’s 900 rupee strike put base is significantly higher than the call options base, and above these levels is a short cover round for settlement. However, given market volatility, we recommend a stock protection put strategy.

Lupine: Covered Call Strategy

1070-1075 long Lupine April futures and April 1140 short phone 9-11

the goal: 1,150

Stop loss: 1,025

The rationale:

a) Pharmaceutical stocks have shown considerable buying motivation and have been able to maintain that level despite their broader weaknesses. Stocks like Lupine are showing signs of outperformance and are expected to rise further towards 1,150 stocks in the short term.

b) Equity open interest has risen by more than 30%, but equities remain largely within the April series. We believe that long positions are formed in stocks and covered call strategies can be carried out in stocks.

FX Strategy:

1) Sell USD-INR

Sell ​​USD-INR for 75.20 – 75.20

the goal: 74.60

Stop loss: 75.45

The rationale:

  • In the last few days INR Due to the surge in Covid-19 cases and the purchase of RBIG-SAP, very high volatility was seen.
  • However, the index remains volatile and the call writing observed on the OTM strike shows a limited downside to INR.
support 74.90 74.80 74.60
resistance 75.30 75.40 75.60

2) Long EUR-INR

Buy EUR-INR for 89.80-90.00

the goal: 90.90

Stop loss: 89.40

The rationale:

  • Most currencies have risen against the rupee as the EUR-INR has risen to the 90 level as the Indian rupee plummeted.
  • But Euro Strengthened against dollars trading above 1.20 levels. This should provide the pair with some advantages and it could create new highs.

support 89.70 89.50 88.30
resistance 90.30 90.65 90.90

Stock Day Trading: Tuesday Day Trading Guide Stock Day Trading: Tuesday Day Trading Guide

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