ShekharChatterjee

1:3.5 Risk Reward opportunity on HINDUNILVR

Long
NSE:HINDUNILVR   HINDUSTAN UNILEVER
This is my first ever trade idea. I have been a fundamental stock analyzer for the most part of my time. I am also someone who doesn't fare well with intraday trading and prefer swing over intraday. I am not a registered financial advisor so please consult your advisor before investing. I am just here to share my bit of understanding and analysis with you and if this trade helps you achieve something, I would be very happy for your success.

As per my analysis, there is a strong Buy on HINDUNILVR between 2170-2215 from the support zone . From the price action and MACD , I can infer that we will probably retest the interim support at 2215 and may bounce. However, in case of further downward movement, there is strong channel support at 2170. Keep a strict SL of 2140.

My Trade on Futures:
Buy from 2215 (+1 lot)
Add more at 2170 (+1 lot)
Long Position Average: 2193 (for 2 lots)
Stop Loss: 2140 (-53 points)
Targets:
2385 (192 points), 2450 (257 points), Open (Please book your profit on the first target itself or trail your SL to 2300).
Risk Reward: 1:3.5

Return on Capital
Investment: 2,48,684
Max Loss: 31,800 (12.6%)
Profit on the first target: 1,15,200 (46.3%)

Fundamental Analysis
As per the financials of the company, the reserves have increased dramatically in the last quarter (Sep 2020), plus the FIIs have increased their shareholding. In an overall sense, there isn't a negative trigger as of now to break the uptrend channel (of 2170) that started in June 2017. There is a higher probability of success in this trade.
Trade active: 1.5% shy of our first target
Trade active: Made a high 12 points away from our Target 1
Trade closed: target reached: Target Reached!
Trade closed: target reached: Made a high of 2446 (4 points away from our final target).

Comments

Close to our target.
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A perfect bounce from the channel at 2143. Reversed 3 points away from our Stop Loss at 2140 and now made a high of 2194. Our buy average is 2193.
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Have placed an order for another lot at 2170. Will wait patiently for the price to execute my order. We did take a swing in the morning from around 2171, but I think we will test 2170 to take my order.
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ShekharChatterjee ShekharChatterjee
@ShekharChatterjee, Have also placed a stop loss for 2 lots at 2153 since my order 2170 will get executed if we move further down.
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ShekharChatterjee ShekharChatterjee
@ShekharChatterjee, Will keep my SL at 2130 so that it doesn't get triggered by a panic move in the first few hours tomorrow.
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ShekharChatterjee ShekharChatterjee
@ShekharChatterjee, Patience pays. Order just got executed at 2170.
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ShekharChatterjee ShekharChatterjee
@ShekharChatterjee, Buying average 2193, Total Investment: 2,51,240, Total Qty 600 in futures.
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Added one lot at 2215 around closing as per the strategy
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Today view? Or this week view?
Reply
@chinna6674, Not Intraday. Weekly view. Don't buy Options, please. Only go with futures at the specified levels to know your max profit/loss accordindly.
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