On Anil Singhvi's show, Jay Thakkar reveals affordable option II Earnings high, but margin, risk and brokerage low

Jay Thakkar Vice President & HOR Equity Research (Fundamental, Technical, Derivatives & Algo) at Marwadi Shares and Finance Ltd said the strategy for today will be today put option of 14150 because ICICI Securities is seeing a breakdown in the market. This option should be bought around Rs 97, with a stop loss of Rs 47 and the target on this would be Rs 142 and second target would be Rs 165. There has clearly been a trend reversal in the markets. 14300 levels on Nifty is a clear resistance for the markets from here on. Short to medium trend of the markets will remain negative unless we close above 14300 levels on Nifty.    

ICICI Securities says the daily price action formed a bear candle while maintaining a lower high-low formation, indicating extended breather as intraday pullbacks were short lived. ICICI Securities believes the prolonged breather from here on would make market healthy ahead of key major event of Union Budget coincided with January series derivative expiry session, and eventually help index to form strong higher base formation in the vicinity of psychological mark of 14000, as ICICI Securities do not expect index to breach the strong support zone of 14000-13800. 

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Meanwhile, stock specific activity would continue amid elevated volatility as we proceed the Q3FY21 earning season.  Key point to highlight is that, the Nifty midcap and small cap indices are undergoing slower pace of retracement as over past two weeks both indices have merely retraced 38% of preceding three weeks rally, indicating healthy consolidation, which has helped weekly stochastic oscillator to cool off the overbought condition (currently placed around 71).

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Thus, ICICI Securities expects the broader market to form a higher base by regaining upward momentum and eventually outperform the benchmark. The Nifty midcap index has surged to new life-time highs, whereas the small cap index is still ~30% away from all-time high. Thus, ICICI Securities expect small caps to witness catch up activity.  Structurally, the Nifty has strong support base in the range of 14000-13800 as it is confluence of 61.8% retracement of current up move (13131-14754) at 13751 coincided with January low of 13954