Day trading guide for Thursday’s market

IIFL

Technicals
By Jayesh Bhanushali, Sr. Derivative & Technical Research Analyst

Technical view: Outlook on Nifty Bank

Nifty Bank index gave a strong recovery from its 10day EMA support level of ~23100 and closed the Wednesday’s trade on a strong note.

The index formed a bullish engulfing candlestick on the daily chart and managed to close above its previous swing high, clearly indicating a positive bias.

It’s October future contract has also added fresh long positions during the Wednesday’s. We expect Bank Nifty to trend higher and test our immediate target price of 24,500 during the October series.

Tech Picks

F&O Strategy
By Rupak De, Senior Research Analyst

ICICI Bank OCT Future ended the session 2.17 per cent higher. On the daily chart, the price has engulfed the previous day’s bearish move, which is a bullish setup. On the options front, Call writers have shifted their position from 400 strikes to 420 strikes suggesting an expiry at higher prices from current levels.

Trade:
ICICI Bank Bull Call Spread

(Hold till Expiry: 29th Oct 2020)

Buy 1 lot ICICI Bank 29 OCT 410CE at Rs12.10
Sell 1 lot ICICI Bank 29 OCT 420CE at Rs8.30

• Net Premium outflow Rs 3.80 (appox.)
• Maximum Loss Rs 3.80/lot (appox.)
• Maximum Profit 6.2 (appox.)

Futures:
Buy L&T OCT Future at Rs912-918

• TARGET: Rs 955
• STOP LOSS: Rs 900

Forex Technical
Amit Pathania, Senior Technical Strategist


USDINR Status: Likely to move lower towards 73 levels

Call for the day: Go short in OCT future around 73.50

• TARGET: 73
• STOP LOSS: 73.75

GBPINR Status: Likely to move lower towards 94.20 levels

Call for the day: Go short in OCT future around 95

• TARGET: 94.20
• STOP LOSS: 95.40

Commodity Calls
Amit Pathania, Senior Technical Strategist