ShekharChatterjee

1:6 RR - NMDC Good Long Opportunity - Short Term Trade

Long
NSE:NMDC   NMDC LTD
Good Long Opportunity for Feb expiry. The 15 mins downtrend that started on 21st January 2021 was broken recently on 17th February. On 18th February the price made higher lows and higher highs and the previous swing wasn't tested. This is a sign of good strength. An interim resistance was broken today and the price closed taking support on the level.

Signs of Strength:
  • Nifty in Red but NMDC made higher highs
  • PSU Stock and PSUs are having their bullish rallies. This one is yet to rally since the budget.
  • Closing above resistance and taking the support.

Buy NMDC for a quick target of 122.5 and see if we sustain the level. If we break with strength then an easy target awaits at 130.
Keep a strict stop loss at 118.

There is a 40% chance of hitting the SL however since the risk-reward is too good to ignore, I have personally taken my position at the last minute today. I wouldn't mind my SL getting hit either. Once we cross 124, I will move my SL to 122 and ride until 130.
Comment: Crossed our target 122.5 twice today. However, the price has dropped to the channel again since there is strong resistance at 122.5. I have personally booked 50% qty at T1, and now I am holding with a strict stop loss at 118 as per the strategy shared with you. The price is consolidating now between 120.4 to 120.9 and wil likely blast up in some time. Hold with SL 118 and be patient. Either we hit the target or hit the SL. There's nothing in between.
Comment: SL took a hit for the remaining qty.
Trade closed: target reached

Comments

130 Target hit.
Reply
NMDC 5% up at 125 now. heading for 130.
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Although I have exited from this position, NMDC was still very strong today despite having a highly volatile market today
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