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ShekharChatterjee
Feb 14, 2021 8:24 PM

1:3 Risk Reward opportunity on BATAINDIA. Wait for entry Long

BATA INDIANSE

Description

As per my analysis, there is a strong Buy on BATAINDIA between 1350-1415 from the support zone. From the price action and MACD, I can infer that we will probably retest the interim support at 1468 and will fall further (H&S Shoulder pattern) to enter the demand zone mentioned above.

My Trade on Futures:
Lot Size: 550
Buy around 1415 (+1 lot)
Add more at 1350 (+1 lot)
Long Position Average: 1383 (for 2 lots)
Stop Loss: 1310 (-73 points)
Targets:
1620 (237 points), 1827 (444 points), Open (Please book your profit on the first target itself or trail your SL to 1550).
Risk Reward: 1:3

Return on Capital
Investment: 3,76,530
Max Loss: 80,300 (21.3%)
Profit on the first target: 2,60,700 (69.24%)
Time: 3-4 months
Cost of Rollover: Just buy the farthest future. Likely cost: INR 3000 - 4000

Fundamental Analysis
Increase in FII shareholding in Dec 2020 as against Sep 2020. Sales are likely to boost once the offices reopen and travel resume.

Trade closed: stop reached

SL hit but will likely follow the expected trend.
Comments
ShekharChatterjee
Will enter tomorrow with 2 lots in April Future. Took a long long two months for this trade but worth the patience.
ShekharChatterjee
Press the forward button to see the downtrend. The double bounce was from fictional support and a breakdown will likely activate our trade. Testing patience just for the entry.
ShekharChatterjee
The stock barely went flat on a bullish day. We will likely be able to enter at our levels with a good small SL. Being patient here is the key. Could be a really good opportunity if we are patient.
ShekharChatterjee
Still waiting on neckline breakdown. Have created an order on futures as per the spit prices listed above. Either we get in on the trade with a good RR or we don't enter at all. There's always a market tomorrow.
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