Trading ideas and derivative calls short-term

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Pee Vee
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Joined: Mon Dec 26, 2016 10:45 pm

Trading ideas and derivative calls short-term

Post by Pee Vee »

Technical view: Nifty finds strong support around 9050 and will attempt to rise past fresh all-time high of 9122 on closing basis for further leg up till 9200. Bank Nifty also finds strong support around previous high of 21042 while any close above 21200 will see rally upto 21450 on the upside.

Trading ideas (Time period: 1-3 days)

Cipla (Buy above Rs 601 for Target of Rs 625 Stop Loss at Rs 589): After being stuck in a narrow trading band for over 3 weeks, Cipla has finally broken out from a consolidation pattern on the daily charts. The breakout is accompanied with impressive rise in volumes while the RSI too is indicating a positive range shift.

Derivative strategies (Time period: Till expiry)

Buy ZEE ENT March Future @ 520-523, Stop Loss 509.5 and Target 529-530.

Derivative Snippets

Markets closed above 9000 level for the first time ever as the call option writers were taken for a toss. Huge short covering was witnessed in Nifty 9000CE as the call base shifted from 9000 to 9200. Fresh short positions were created in Nifty 9000PE, indicating of a new floor for Nifty on the lower side.
FIIs were net buyers in cash market segment to the tune of Rs 4087 crore.
FII’s index future long/short ratio at 3x vs 2.9x. Long position in Index Future to the tune of ~35k contracts was created.
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