Nifty Forecast/Outlook for 5th Feb 2018:
Index forms strong bearish pattern on 2th Feb 2018 , as nifty opened the day by losing 78 points and continued to move lower and lower to break both 13-Day and 20-Day EMA to reach the intraday low of 10,736 and finally settled near the lows at 10,760 by losing 256 points.
Nifty is well poised to test the 50-Day EMA placed at 10,620 in the days to come and every rise can be used to build short positions.
In the derivatives segment, FII’s have sold 1988 crores in index futures and bought 1525 crores in index options. Currently Nifty futures is trading in the discount of 5 points. these two are signals more down to come but on the other hand we can decreasing open interest while price is falling suggesting aggressive shorts are not getting build in currently, so our prediction is nifty will take support near the 50-Day EMA at 10,600 -10,620 levels.
One can still hold on the shorts with the target of 10,600 with stop around 10,900.
Nifty target for tomorrow 5th Feb 2018:
As Nifty is expected to trade with a negative bias, downside target of 10,650 are much possible with a small bounce to 10,800 can’t be ruled out. Nifty supports are placed at 10700 and 10650 whereas resistance are at 10,800 and 10860.
Nifty trading calls for 5th Feb 2018:
- Recommended for 5-Feb-2018,
- Sell Nifty Feb Futures near 10,800 levels for a downside target of 10,620 with a stop around 10,900 levels. Hold on the positions for 2 -3 days.
Nifty contributors and intraday movement of 2-Feb-2018.
Only 5 of 50 nifty stocks closed in the green. Tech Mahindra is the top gainer by gaining 1.37 % and Bajaj Finance is the top dragger by losing 5.81%.
Opening: 10,938.20; High: 10,954.95; Low: 10,736.10 Closing Price: 10,760.90(-256.30)
Nifty 22 Feb 2018 Expiry Futures closed at 10,755.85 (-275.45)
Nifty Feb 2018 Expiry trading range: Nifty expected to trade between 10,500 -11,000 levels.
Positional Nifty Call for 22 Feb 2018 Expiry Strategies:
- Position Recommended on 27-Jan-2018: Buy Nifty 22 Feb 2018 11,000 PUT and sell two lots of 10,800 Put and buy one lot of 10,600 on Monday(i.e 29-Jan-2018) . Hold the position for target of 10,000 as the current premium outflow is just 22 points. Current Status :position is gaining by Rs 3127.
Past performance on Nifty positional trades.
- Position Recommended on 25-OCT-2017: Initiate a pair trade by selling Nifty 30 Nov 2017 Futures around 10,325-10,350 and also buy Bank nifty Nov futures around 25,150 -25,200 levels. Hold the position for target of RS.20, 000 with stop around Rs. 10,000.Target achieved in 20 Days with a profit of Rs. 20,000.
- Position Recommended on 13-Dec-2017: Initiate a pair trade by Buying Nifty 28 Dec 2017 Futures and also Sell Bank nifty Dec futures by 9.20 AM on 13-Dec-2017,On 13 Dec 2017 Nifty was bought at 10,250 and bank nifty was sold at 25,160 levels. Hold the position for target of RS.15, 000 with stop around Rs.10, 000.Holding period 10-15 Days.Target Achieved on 18-Dec-17 in 6 days Rs. 15,000 profit.
- Position Recommended for 19-Dec-2017: Sell Nifty 25 Jan 2018 Futures 10,500 for a target of 10,300 with a stop around 10,620.Hold for 10-15 Days. Stop loss Triggered, Loss of 120 points.(i.e 9,000).
- Position Recommended on 28-Dec-2017: Initiate a pair trade by Buying Nifty 25 Jan 2018 Futures and also Sell Bank nifty Jan futures by 9.20 AM on 28-Dec-2017 and Hold the position for target of RS.15, 000 with stop around Rs.10,000. Nifty buying price @10,542 and bank nifty selling price @ 25,560. Booked Profit Rs.4500. as bank nifty is showing sign of strength.
Visit our website on 5-Feb-2018 9.30 PM to get the nifty view for 6-Feb-2018.
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