Nifty Forecast/Outlook for 8th Feb 2018:
Nifty is expected to trade with positive bias and also volatility is expected to come down.
Index forms bearish belt pattern on 7th Feb 2018 which means opening price is more or less the high point of the day and closing price is more or less the low point of the day.
Nifty opened the day with a 109 points in the green near the 50-Day EMA but failed to cross the level and lost 21 points for the day to settle at 10,476.70.
In the derivatives segment, FII’s selling continues as they have sold 1751 crores in index futures and bought 586 crores in index options .Nifty futures is trading in the discount and decreasing open interest trend is continuing for the past few trading session. On technical front RSI is 35 which is suggesting nifty is near the oversold levels. All these are indicating volatility will continue for few more days and bounce back can be seen anytime soon.
As said previously nifty for the past 2 years test have not closed below 100-Day EMA and was always bounce back from these levels. 100-Day EMA was placed at 10,403 which will be acting as strong support on closing bias.
Nifty target for tomorrow 8th Feb 2018:
As Nifty is expected to trade with a positive bias, upside target of 10,550 are much possible with a down side target of 10,400 can’t be ruled out. Nifty supports are placed at 10,400 and 10300 whereas resistance are at 10,550 and 10622.
Nifty contributors and intraday movement of 7-Feb-2018.
Only 23 of 50 nifty stocks closed in the red. HPCL is the top gainer by gaining 4.97 % and Ambuja is the top dragger by losing 2.74%.
Opening: 10,607.20; High: 10,614.00; Low: 10,446.40 Closing Price: 10,476.70(-21.55)
Nifty 22 Feb 2018 Expiry Futures closed at 10,465.55 (-47.75)
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 1500.
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 8-Feb-2018 9.30 PM to get the nifty view for 9-Feb-2018.