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Monday, June 21, 2021

Day trading guide for Tuesday

Must read

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ICICI Pru Life shares gain 0.16% as Sensex falls

A total of 20,651 shares changed hands on the counter till 10:56AM (IST)

Torrent Pharma shares up 1.12% as Nifty drops

A total of 2,883 shares changed hands on the counter till 10:51AM (IST).
ICICI Securities


Outlook: Nifty

Analyst: Dharmesh Shah, Head – Technical
The benchmark indices witnessed strong up move on Monday’s session as it recouped 80% of its previous three session’s decline (14,966-14,592) in just a single session, highlighting resilience. Going ahead, we maintain our stance of 15,400 in the coming weeks. A follow through strength above the upper band of the last four weeks’ consolidation (14,950) will lead to acceleration of the up move. Any corrective dips towards 14,600-14,700 should be capitalized to accumulate quality largecap and midcap stocks. We expect the broader market to continue with its relative outperformance amid progression of Q4FY21 earning season

Analyst: Dharmesh Shah – Head Technical

C58ET CONTRIBUTORS

F&O Strategy

Analyst: Raj Deepak Singh, Head Derivatives

Buy M&M May futures

CMP: Rs 758

Target: Rs 805

Stop loss: Rs 730

Rationale:

  1. Auto stocks have significantly underperformed the markets in the last couple of months and witnessed selling pressure at every rise. Moreover, stocks like M&M have witnessed accumulation of short positions and current OI in the stock is highest in almost three months. As stock is reverting from its highest Put base of 750, a round of short covering is expected.
  2. On the higher side, the highest Call base for the stock is placed at 800 Call strike around which stock should find the first round of hurdle.

Buy ACC May futures

CMP: Rs 1,403

Target: Rs 1,470

Stop loss: Rs 1,360

Rationale:

  1. ACC has remained largely unchanged in recent market volatility and traded in the range of Rs 1850-1900 levels. Despite closure in the futures open interest, the rangebound move of the stock suggests inherent strength in the stock. We expect stock to continue its upward bias and retest its April highs in the short term.
  2. Even in the options space, the significant open interest at 1900 Call strike remained intact despite stock closing above these levels. We expect closure of these positions would trigger further up move in the stock.

FX Strategy


Sell USD-INR

Sell USD-INR at 73.50-73.60

Target: 73.10

Stop loss: 73.85

Rationale:

  • Positive domestic equities along with choppy US

    Dollar

    is likely to provide support to the INR.

  • After appreciating for a few sessions, INR paused its trend. However, on bounce, 73.5 can act as a hurdle.
Resistances 73.80 73.90 74.00
Supports 73.50 73.30 73.10

Buy EUR-INR

Buy EURINR at 89.00-89.10

Target: 89.80

Stop loss: 88.75

Rationale:

  • EUR-INR reverted sharply from 88.8 levels as weakness in the Dollar index coupled with strong economic data provided support to the pair.
  • EUR-USD continued to trade higher and recent news provided positive gains which helped EUR-USD to touch 1.21 levels.
Supports 88.50 88.60 88.80
Resistances 89.50 89.75 90.00

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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