Technical view: Nifty will now attempt the previous high of 8968 hit in September 2016 which will act as resistance while support now emerges closer to 8840 which was the earlier resistance. Bank Nifty is in blue sky territory with new highs being seen & will attempt 21200 while support now comes around 20576.
Trading ideas (Time period: 1-3 days)
INDIACEM (Buy above Rs 173, for target of Rs 182, SL at Rs 168): Stock has broken out from a cup and handle pattern, which has aided India Cement resume its prior uptrend. The breakout has been accompanied with impressive volumes. Other oscillators also indicate that the current momentum would extend. We advise to Buy INDIACEM above Rs 173, Stop Loss at Rs 168 and Target of Rs 182.
Derivative strategies (Time period: Till expiry)
Buy United Spirit February future @ 2405-2415, Stop loss 2357 & Target 2448-2455.
Derivative Snippets
Markets traded with a positive bias, as the index call option writers continue to cover their short positions for the third straight day. Nifty 8800 CE to 9000 CE strikes witnessed massive short covering.
IIFL