Amaraja Battery looks good for a reversal from these levels
Closed on CMP 739.70
It is trading between a range of 757 - 730 since the last 15 trading sessions. Also, if one can see that the stock is in downtrend after htting the high of 1025.55 but no massive selling is coming as you can see that accumulation is gong around which clearly indicates that its the time for reversal for this stock.
Keeping 696 as stop loss where it completes its harmonic pattern one can enter the trade for good returns.
Disclaimer : I am not SEBI registered analyst, this is for educational purposes. Please trade as per your risk and do consult with your financial advisor before taking any trading decisions.
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why is amaraja battery future is trading at a discount from current market price?
Piscean17th
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@rohitbhatter7, This is known as "Backwardation" in the futures markets.
Assuming by Cash market you mean Spot, then this means that it is more expensive to buy something today than in the future.
This typically happens when the front month futures are trading at a premium to the back month futures. Meaning the price of a forward or futures contract is trading below the expected spot price at contract maturity.
This means that there is more demand and less supply right now due to some core need. Since people are not willing to wait until later to purchase the same commodity at a lower price and are actually willing to pay the storage fees and cost of carry.
rohitchart
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but at the end of the month on expiry of the month the future and spot prices would be same na as amaraja battery spot is trading around 734 and future at 728 of june month.
rohitchart
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sorry i meant july today i went long on this share in this share future
singhpiyu1988
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Bhai this is due to dividends. Amaraja has declared divided Rs 6/- per share Ex Date 29th July, this means share price will go down by 6 after ex dividend date but future will not go down as it has already adjusted the dividend. Same has happened in ITC last month, see the ITC chart you will understand the Amaraja story.
rohitchart
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it just keep falling i brought at 733 july future now in 9k loss what is the bottom in this stock 😰 thinking of selling 720ce for July so atleast i can breakevn at expiry whats ur view will it go up next week for keep going down?
Piscean17th
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@rohitbhatter7, good afternoon. First of all, you need to minimize the loss, please hedge your position so that it gives a cushion, everybody has their own trading style. What I see on charts is the level of 696 which is a good support. Also by coming midweek it will show an upside. I wish you good luck and please trade as per your risk appetite with strict STOP LOSS.