Nifty Outlook for May 24, 2021
By Chandan Taparia, Derivative & Technical Analyst, MOFSL
Nifty index opened positive on Friday near to 15000 zones and witnessed sustain buying interest throughout the day. It crossed psychological 15000 marks and headed to 15190 levels after a slight correction of last two sessions. It gave the highest daily close of the last 51 trading sessions and settled with huge gains of around 270 points. Technically, it formed a strong Bullish candle on daily and weekly scale while has been forming higher top – higher bottom from the last three weeks. Now, it has to hold above 15050 zones to witness an up move towards 15300 then life time high of 15431 marks while on the downside support exists at 15000 and 14900 zones.
Stocks (spot levels):
India VIX fell down by 2.90% from 19.65 to 19.08 levels. India VIX needs to hold below 20 zones to extend the bullish market momentum towards new life time territory. On option front, Maximum Put OI is at 14000 followed by 14500 strike while maximum Call OI is at 15500 followed by 16000 strike. Call writing is seen at 15700 and 15600 strike while Put writing is seen at 15000 then 15100 strike. Option data suggests a broader trading range in between 14800 to 15400 zones.
Bank Nifty opened positive and buying interest in all the banking stocks pulled the index towards 34700 zones. It closed the last session of the week with the handsome gains of around 1270 points and gave the highest daily close of the last 43 sessions. The last hour of the session, saw quite a sharp up move and surpassed its previous resistance of 34143-34287 zones. It formed a strong Bullish candle on daily scale and negated its lower highs – lower lows formation of the last two sessions. Now it has to hold above 34250 zones to witness an up move towards 35000 and 35250 zones while on the downside support exists at 34000 and 33500 levels.
Nifty: Bull Call Spread : +15250 CE – 15400 CE (27th May, 2021)
Buy 1 lot of 15250 call@ 100
Sell 1 lot of 15400 call@ 45
Net premium paid: 55 points
Keep SL of net premium of 15 points: risk of 40 points
Keep target of net premium of 145 points: reward of 90 points
Major trend is positive along with breakout and started to from higher highs – higher lows.
India VIX is sustaining lower with rise in Put Call Ratio suggesting an overall bullish undertone of the market.
Put writing is intact at lower strikes which could provide support
By Kishore Narne, MOFSL
USD/INR Status: Short-term trend remains negative!
Stop Loss: 73.35
Trade: Short-term trend looks bearish as long as the pair is trading below the resistance of 73.35 level. Selling on rallies is advised targeting lower support at 72.15 level.
EUR/USD Status: Short-term trend remains positive!
Stop Loss: 1.2090
Trade: The pair is having short-term support at 1.2090 mark and a rally towards higher resistance at 1.2290 looks likely. Buying on dips is advised.
By Amit Sajeja, MOFSL