Day trading guide: Stock-specific rally likely to continue


Amit Trivedi, YES Securities


The last few weeks have been notably different; however, for the better. A second effort not only cleared that hurdle, but consistently shifted Nifty’s range higher. Post 10% up move, periodical pullbacks towards the support zone of 11,700 might be there. However, a little more progress from here could shove the rally into an even higher zone towards 12,000. Mixed internal breadth indicates that stock-specific rally theme is likely to continue.

Index Strategies

Short strangle on Nifty
(Expiry: 15th October)

  • Sell 12,050 call and 11,650 put at combined premium of Rs 100-105
  • Stop loss is Rs 159

The index has more room on the upside. However, higher levels could attract some profit taking after which it is likely to witness some price consolidation. Hence, selling OTM options for the coming weekly expiry seems prudent strategy to follow at current levels.

Stock Strategies

Buy Godrej Properties

  • October future near Rs 927
  • Stop loss of Rs 903 for a possible upside target of Rs 980

The stock has rebounded from the support zone. Recent rally was accompanied on comparatively higher volumes; also fresh longs were seen in the October future. Positive follow-up could attract further buying interest.

Buy DLF

  • October Rs 165 call option near Rs 6.
  • Keep stop loss of Rs 1 for a possible upside target of Rs 16.

Gradual up move from the recent low ensures shift of range on the higher side. Sustenance above Rs 160 could trigger swift move on the upside.





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