In our July 2022 coverage, we had marked the red line zone as possible resistance zone and that is precisely what TCS has followed. It has fallen exactly from those levels - If we look at the broader picture, Since the beginning of the year, TCS has been trading in a classic down trend channel. Now with results round the corner, the stock is in the middle of...
DLF Multiple Line of resistance around 376 - 385 - 21 day EMA around 370 - 63 day EMA around 369 - 252 day EMA around 354 Given the set up one may consider a Short strangle strategy in DLF Sell DLF 400 Call option Sell DLF 340 Put option for October series Net receivable Rs 9.6 per strategy lot. Max profit potential Rs 15840 per strategy and gives a yield...
We are looking at weekly chart of Canara Bank Phase 1 - Trading in a parallel channel from Mar 2018 to Aug 2019 Phase 2 - Trading in a parallel channel from Feb 2020 to Aug 2021 Phase 3 - Canara Bank is back in the same zone as between Mar 2018 to Aug 2019 296-310 zone is crucial resistance zone for the stock. It could be a strong breakout if sustained above...
Nifty - we see Nifty trading above 21 day EMA, 63 day EMA and well above 252 day EMA - Line of resistance around 18200 odd levels - Line of Support around 16800 - So is the 200 day EMA support around 16780 Right now we are in the middle of the range Trading strategy Given the set up one may consider a Short Strangle strategy for Nifty for November...
Observations - we are looking at Post 2008 Global meltdown era - the chart here is Nifty weekly chart - we have used 252 week EMA for our thesis - A Cycle here is defined as the rise of Nifty from 252 week EMA - making a top and then retesting the 252 week EMA - correction only to the point of 252 EMA is taken in to consideration - to cut off the noise, only...
IOC - The stock even in a strong market condition is struggling to get past 21 day EMA - The stock traded in yellow channel for approximately 3 months - Now trading in the red channel zone Target for the current set up 64.15 / 61 Be cautious if IOC closes above 68. Pattern gets invalidated if stock goes above 70.30 Take care and safe trading...!!! Like and...
Reliance We are looking at weekly chart of Reliance Industries - Between July 2018 - May 2020, we observe Reliance trading in 3 red downtrend channel boxes of similar time horizon - In June 2020 , we see Reliance giving a strong breakout above the red trendline - thereafter we have seen Reliance trading in 2 parallel yellow boxes Given the chart...
Today we are seeing people exiting from Call options and entering Put options. In my morning post, we had mentioned Nifty PCR at 0.72 signifying oversold conditions and that Short trade should be carefully taken. We had mentioned the level to short and accordingly given exits also. We had highlighted the level of 17096 in morning to short and at lower levels...
Nifty Retail traders had a bet neutral addition in Index Futures and in Options had a net positive bias FIIs added more on the Short side in Index Futures and in Options had a net negative bias Proprietary traders added Long in Index Futures but have hedged it using Options Before taking any trade decision today Important pointers PCR is at 0.72 Since...
Aurobindo Pharma 21 day EMA around 528 63 day EMA around 543 252 day EMA around 623 One may consider to buy the stock for target of 580 - 588 / 618 - 622 Keep a SL at 525 Take care & safe trading...!!! Disclaimer -The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can...
Nifty - RBI Policy Meet on 28Sept- 30 Sept 2022 - Result season is about to begin and Nifty is near 240 day EMA Important Fibonacci level that may provide Support 61.8% retracement 16293 76.4% retracement 15868 Important Resistance zone 17166-17320 zone 17758-17820 zone Given the set up one may consider to go for a Short Strangle strategy in Nifty for Oct...
Yesterday's trade data clearly showcased that the FIIs had added Net Short position in Index Futures Retail traders went long in Index Futures. In Options retail traders were more active in Put side but had bias on the Long side.. . Even in Stock Futures FIIs added Short positions Trade with knowledge. Invest some time in study and then in...
Nifty - we had already marked the red zone as resistance zone Today we see a big gap down exactly after Nifty got rejected around 17320 odd levels. Are you surprised or were you prepared? Going forward - we are looking at 15 minute candlestick chart pattern - we observe that the zone of 17026-17060 is very crucial for Nifty - between September 28, 2022...
Asian Paints - After 3 Black crows candle stick pattern, recovery in the stock has been tepid so far - The tepid recovery is also due to rise in crude oil prices during the same time. - Given the setup, one may consider to sell Asian Paints 3500 Call Option around 50 (October series) Keep a close watch if Asian Paints closes above 21 day EMA ( currently...
IDFC First Bank - The stock has recently saw a rally from 28 odd levels to 53 levels in 3-4 months - thereafter the stock has seen distribution at 50 odd levels - now the stock has seen a correction of approximately 13% from the top If some one has a long term perspective, one may consider buying the stock in parts 50 day EMA is around 45 200 day EMA is...
Tata Steel - stock is trading below 200 day EMA - trading near 20 day EMA -gap resistance at 109-114 Given the set up one may consider to sell 27 Oct 2022 expiry 120 Call option currently around 2.3 Profit potential 9-10%. Be cautious if Tata Steel goes above 110. Exit if closing is above 114 in Spot. Take care and safe trading...!!! Disclaimer - The...
On September 28, it was suggested that Nifty is near 240 day EMA and that 17166-17320 zone might act as short term resistance and short term support being around 16300 odd levels. Well, Nifty has made a high of 17187 thereafter and and now is back at it's 240 day EMA. For the October month, Important Support and resistance levels going forward Gap support...
MGL Day before yesterday when markets looked difficult, charts indicated that MGL is at Support and that odds are in favor of going Long... In 2 days the stock has rocketed and even in an overall down market this stock is holding up firmly... Note this is not any recommendation now. Just to showcase how technical analysis can improve our trading....!!! The...