Will RELIANCE break 2200? Opportunity for Futures / Swing Trade!

RELIANCE

On Thursday 10th Sep 2020, RELIANCE (RIL) might be attempting to break 2200 Resistance 3rd time in consecutive 3rd month, 2200 is RILs Life Time High (LTH).

RIL's next quarterly earning is on 1st of October 2020 and world-class investors pouring money in RIL, will these triggers propel the stock to new LTH?? Global cues, India-China border tensions, US Elections etc, in these favorable the biggest Indian company can break LTH??

As we all know answering or predicting future is impossible. But is there a possibility of trade here??

Answer is Yes. There is an excellent trading opportunity and in-fact multiple opportunities to trade whether or not RIL crosses LTH. The trade can be tricky but the Risk Reward Ratio (RR) which is the basis of all my trade ideas and analysis, is quite favorable and if the trade is carried out with precision, there is a good chance of making money.

Trade Setup 1: Intra-day Futures // For experience traders

Pre Conditions for this trade

- INDIA VIX: Below 23
- Market and RIL both doesn't open GAP UP or GAP DOWN (In both these conditions let the market and RIL get stabilize on 5 mins chart before
referring to the setup)
- Correction on 5 Min charts upto 2155

Trade Setup:

Place a Limit RELIANCE SEP FUT MIS order at 2150
Once above order is executed, place a Stop-Loss order at 2133
Place a Target Limit order at 2200

Reward is 50 points x 505 (Lot Size) = Rs. 25250
Risk is 17 points x 505 (Lot Size) = Rs. 8585
Risk to Reward (RR) Ratio: 1:3 (Approx) which is considered to be a good RR for any trade setup.

Trade Setup 2: Swing Trade // Delivery based // For low risk traders

- INDIA VIX: Below 23
- Market and RIL both doesn't open GAP UP or GAP DOWN (In both these conditions let the market and RIL get stabilize on 5 mins chart before
referring to the setup)
- RIL is in the range of 2150-2170

Pre Conditions for this trade

Place a Limit RELIANCE CNC order at 2150
Once above order is executed, place a Stop-Loss order at 2100 // Use GTT Order for Zerodha user
Place a Target Limit order at 2300 (1st Target) / Use GTT Order if your Zerodha user
Time Frame: 15-20 trading sessions

Reward is 150 points
Risk is 50 points
Risk to Reward (RR) Ratio: 1:3 (Approx) which is considered to be a good RR for any trade setup.

HAPPY TRADING!!

Note: I would advise only the seasoned traders to attempt the intra-day future in such cases. New traders can attempt the Swing Trade setup and beginners can follow the intraday and daily charts to learn how the "magic" works. Needless to mention, please follow me for more investment and trading ideas.

Disclosure: I may or may not have position in the mentioned scrip.
Disclaimer: All the ideas are subject to market conditions. Trade / Invest at your own risk.

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