 "Derivative Picks: Long Lupin, Idea Cellular, Sun TV")
Nifty Fut (7907)
After sudden crash from 8500 level to lows of 7700 in just 4 sessions created panic and surge in volatility in markets. After touching low of 7680, market sharply bounced on back of short covering and value buying. Hereon Nifty is likely to trade in range between 7800-8050 levels till Aug expiry. As Current Month IV traded above 30%, hence buying cover call option strategy is advised.
Buy 1 lot of Nifty Aug Fut@ 7907 (CMP) and sell 1 Lot of 8000 Aug call @ 39 (CMP).
Target- 8000
IDEA CELLULAR (LONG)
Last close: Rs 151.80
Target: Rs 157
IDEA was in selling mode for whole AUG expiry where stock corrected from level of 170 to 141. Today stock formed Key Reversal Bar, a trend reversal pattern with good volume. As F&O Expiry is nearby, hence there is high possibility of Short covering in stock. Buy IDEA with stop loss of 147.50.
SUN TV (LONG)
Last close: Rs 324.60
Target: Rs 342
After correction from 370 level, Sun TV re-tested it breakout level of 300 and got support. Surge in volume and AB=CD price pattern suggests the high probability of trend resumption. Hence buy with stop loss of 315.
LUPIN (LONG)
Last close: Rs 1842
Target: Rs 1895
Lupin is one of the best performing stock of Nifty Index in recent time. The price pattern is signaling the end of correction. Rise in trading volume and combined open interest are supporting the bounce. Hence buy with stop loss of 1808.
All discussed price levels are Future Price levels.
Disclaimer: These calls are generated on the basis of derivative data and technical analysis. I personally don’t have any position in discussed stocks but as brokerage house, our proprietary desk and clients may have exposure.
Vineet Sood is an Assisiant Vice President (Derivative Research) with SMC Global
After sudden crash from 8500 level to lows of 7700 in just 4 sessions created panic and surge in volatility in markets. After touching low of 7680, market sharply bounced on back of short covering and value buying. Hereon Nifty is likely to trade in range between 7800-8050 levels till Aug expiry. As Current Month IV traded above 30%, hence buying cover call option strategy is advised.
Buy 1 lot of Nifty Aug Fut@ 7907 (CMP) and sell 1 Lot of 8000 Aug call @ 39 (CMP).
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Stop loss- Nifty Spot Level of 7850
Target- 8000
IDEA CELLULAR (LONG)
Last close: Rs 151.80
Target: Rs 157
IDEA was in selling mode for whole AUG expiry where stock corrected from level of 170 to 141. Today stock formed Key Reversal Bar, a trend reversal pattern with good volume. As F&O Expiry is nearby, hence there is high possibility of Short covering in stock. Buy IDEA with stop loss of 147.50.
SUN TV (LONG)
Last close: Rs 324.60
Target: Rs 342
After correction from 370 level, Sun TV re-tested it breakout level of 300 and got support. Surge in volume and AB=CD price pattern suggests the high probability of trend resumption. Hence buy with stop loss of 315.
LUPIN (LONG)
Last close: Rs 1842
Target: Rs 1895
Lupin is one of the best performing stock of Nifty Index in recent time. The price pattern is signaling the end of correction. Rise in trading volume and combined open interest are supporting the bounce. Hence buy with stop loss of 1808.
All discussed price levels are Future Price levels.
Disclaimer: These calls are generated on the basis of derivative data and technical analysis. I personally don’t have any position in discussed stocks but as brokerage house, our proprietary desk and clients may have exposure.
Vineet Sood is an Assisiant Vice President (Derivative Research) with SMC Global