Nifty Forecast/Outlook for 7th Feb 2018:
Nifty is expected to trade with negative bias and may stabilize in a day or two.
Index forms bullish pattern on 6th Feb 2018, as nifty was able to recover more than 220 points from day’s low. Nifty opened with a gap down of 370 points and further lost 30 points to reach the intraday low of 10,276 by breaching the 100-Day EMA placed at 10,400.
Nifty was able to recover 322 points for the lows to test 50-day EMA again can reaching the intraday high of 10,594 and finally closed at 10498 by losing 168 points.
In the derivatives segment, FII’s have sold 1068 crores in index futures and bought 2836 crores in index options .Nifty futures premium lost 3 points and was trading with 15 points in premium and for the decreasing open interest trend is continuing for the past few trading session.
We are expecting nifty to test 10,600 in the coming days and stablise near this zone. Traders can stay in sidelines till the volatility goes off.
Nifty for the past 2 years test have not closed below 100-Day EMA and was always bounce back from these levels. Currently 100-Day EMA was placed at 10,398 which can be acting as strong support on closing bias.
Nifty target for tomorrow 7th Feb 2018:
As Nifty is expected to trade with a negative bias, downside target of 10,400 are much possible with a bounce to 10,580 can’t be ruled out. Nifty supports are placed at 10,400 and 10300 whereas resistance are at 10,550 and 10622.
Nifty trading calls for 7th Feb 2018:
- Recommended for 6-Feb-2018,
- Buy Bank Nifty 8Feb2018 26,100 call one lot and sell 26,500 call two lots. Hold on the positions till 8-feb-2018 expiry.Target of 10,000 and stoploss of 4000.
Nifty contributors and intraday movement of 6-Feb-2018.
Only 5 of 50 nifty stocks closed in the green. Bajaj Finance is the top gainer by gaining 3.56 % and Lupin is the top dragger by losing 5.68%.
Opening: 10,295.15; High: 10,594.15; Low: 10,276.30 Closing Price: 10,498.25(-168.30)
Nifty 22 Feb 2018 Expiry Futures closed at 10,513.30 (-171.30)
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 2500.
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 7-Feb-2018 9.30 PM to get the nifty view for 8-Feb-2018.