Stock calls by Tradebulls Securities: Buy Britannia, Sell Tata Steel
Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP - Technical (Equity), Tradebulls Securities.
 "Stock calls by Tradebulls Securities: Buy Britannia, Sell Tata Steel")
premium
As expected, break below 11,450 levels led to commencement of larger corrective move towards 11,300. Gap down opening followed by incremental momentum to the downside led to a breach below 50-DEMA (double exponential moving average) which indicates weakness to prevail in the coming sessions. Daily RSI has been quoting below 50 and is now is approaching oversold zone.
Significant call writing at 11,500 strike price suggests the levels could act as a hurdle on an immediate basis. Elevated VIX along with sustained call writing at higher strikes indicates upside to cap on an immediate basis. Short term traders should refrain from initiating fresh shorts as most short horizon oscillators are now approaching their respective oversold territory. It will be prudent to hold on if any shorts with trailing stop loss above 11,520 levels and review the same as index approaches its support zone around 11,300-11,330.
Significant call writing at 11,500 strike price suggests the levels could act as a hurdle on an immediate basis. Elevated VIX along with sustained call writing at higher strikes indicates upside to cap on an immediate basis. Short term traders should refrain from initiating fresh shorts as most short horizon oscillators are now approaching their respective oversold territory. It will be prudent to hold on if any shorts with trailing stop loss above 11,520 levels and review the same as index approaches its support zone around 11,300-11,330.