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Nifty Outlook
Nifty saw a strong rebound from the 'Run Away Gap' support area near 7700. A ‘Rising Three’ formation on the weekly scale augurs well for the existing bullish trend to remain intact. Further longs could be added with an expectation of a breach above 8000. While 7700 now could be considered as a trailing stop level for fresh longs.
Reco: BUY
Last Close: Rs 2,951
Target : Rs 3,160
Positive sector outlook & rebound from the immediate support. Occurrence of a 'Bullish Hammer' re-confirmed the support zone. Stock could be accumulated with a stop below Rs 2,880 with an expectation of a move back towards Rs 3,160.
Reco: BUY
Last Close: Rs 1,210
Target : Rs 1,260
Occurrence of a 'Bullish Harami' at the retracement support along with the positive crossover in RSI, indicates termination of the corrective move. The pullback provides a favorable reward to risk for fresh longs. Infosys can be bought with a stop below Rs 1,190 for a target upto Rs 1,260.
Reco: BUY
Last Close: Rs 462
Target : Rs 495
Breakout from the ‘Falling wedge’ supported with significant jump in volumes. LIC HSG could be traded with a stop below Rs 462 for a pattern target upto Rs 495.
Option Strategy: ICICIBANK (Modified Bull Spread)
Buy 235 CE 1 lot Sell 245 CE 1 lot Sell 215 PE 1 lot
Target: Rs 13,250 STOP LOSS: Rs 3,750
Rationale:
Positive sector outlook along with incremental participation augurs well for momentum to continue further
ICICI Bank is in long- long unwinding cycle
Unwinding in 230 CE could lead to further push towards higher levels
Put built-up at 220-230 act as immediate support
Considering positive outlook and to benefit for theta decay, Modified Bull Call spread is recommended
