dravya

DMART IPO - How to play such events ? ( Educational )

dravya Updated   
NSE:DMART   AVENUE SUPERMARTS
Today, as we all know D-Mart had a blockbuster opening.
Many of us couldn't get any shares alloted.
Still, we could trade once it opened.

But how do we trade such events ?

Here's how I like to do it.

It's quite close to the 'opening range breakout' strategy.


So, the rationale behind this is we know there's some huge one side momentum and we can expect extremely good moves even after strong gap-ups.

Hence,
whenever we see such a bias in the market,
such as today, where this happened :

1 Min Chart

We can do similar trade to this,

Here, you can see see the high of the opening candle was a crucial followed by another attempt of going higher which couldn't . So we get to know that if price surpasses the opening high again, surely there's some huge buying interest.

So we should buy the high breakout with very sensible stop loss; in this case, the swing 2 high or else the close to give more room. Risking few to gain the Reward of the disequilibrium.

The only thing to worry about in this strategy is sudden price drop, which does happen at times.

If you build a strategy around this, it could mint you good money even in future. :)

Cheers !!
Comment: 616, the high of open should act as a support, note that, see if it comes over there and stops, then buy on the U-turn 2-3 rs costlier at 618-620 and put 614 SL.
Comment: Choppiness / Volatility failed the above strategy. No profits to be earned.

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