Trading Setups For the Coming Week
Sharing Trading setups with Detailed Charts in both Cash & Derivative markets for the following week. Analysis strictly for educational purposes only. Please read the disclaimer at the end.
Good morning traders.
Another grim week in the markets, I hope my repeated warnings during the previous rally proved useful indicating that it was a bearish overall structure! With the nifty50 benchmark index shedding another 450 points this week, it closed the week right near it’s previous lows. Structure says this low should be taken out as well, so be careful. On the other side, bear market rallies can be quick & powerful as well, but do not get trapped into them.
In accordance with the broader market trend, this edition consists of multiple positional short setups, along with a few names hovering near crucial support zones, which can be tracked for potential short trades as well. Read on to find out what the names are!
FnO Space
I have provided multiple setups in this section. All of them are showing alarming weakness, with price breakdowns. Here they are below - (Please read the additional insights & analysis written on the chart)
DELTA CORP CURRENT FUTURES (CMP - 222.3, NSE)
This counter has given a breakdown from a support zone it has held right from the time this contract has been traded. It’s just the exact opposite of the blue-sky-zone, meaning it has headed into life-time lows. Breakdown occurred on rising volumes. Chart is self-explanatory. Please read the orange font box!
TRADE SETUP - BREAKDOWN
My View - Bearish
BHARAT ELECTRONICS CURRENT FUTURES (CMP - 219.05, NSE)
This counter failed to hold it’s previous breakout zone and has fallen through, which may also indicate trapped longs here. Sustaining below 220 will lead to put writers of the 220 strike to come under pressure to unwind losing positions, triggering more downside. Volatile counter, be careful. Again, please read the orange font box in the chart for further insights.
TRADE SETUP - BREAKDOWN
My View - Bearish
INDIABULL HOUSING CURRENT FUTURES (CMP - 117.3, NSE)
This counter has given a breakdown from a support zone which held for more than a year. A pullback will give the ideal R:R for a positional short. Be careful though, as this counter is very volatile. Do check the chart & read the orange font box for additional insights into the trade.
TRADE SETUP - BREAKDOWN
My View - Bearish
Support Zone Trades
These stocks are trading near important support zones, from which they can bounce and provide a good opportunity for a swing trade, or play the downside in-case of a breakdown. Providing good risk:reward ratios, these can be understood and executed very easily. Here they are below -
SBIN CURRENT FUTURES (CMP - 438.75, NSE)
This counter is placed near a crucial support zone. It closed near weekly low, and is forming what looks like an H&S top, which will be confirmed if it breaks down from here. See the chart & read the additional analysis to gauge the complete setup.
TRADE SETUP - SUPPORT ZONE
My View - Neutral, edging towards bearishness.
SAIL CURRENT FUTURES (CMP - 79.6, NSE)
This counter is placed near its previous breakout zone back in 2021. It closed at weekly lows forming a bearish marubozu, indicating that it will probably give a breakdown. A few percentage points of further fall will confirm the same & will be a good opportunity for positional longs. Do read the chart.
TRADE SETUP - SUPPORT ZONE
My View - Bearish
AXIS BANK CURRENT FUTURES (CMP - 636.4)
Similar to the SBIN setup, this counter is placed near a crucial support zone as well. Another instance of similarity to the SAIL setup above, it closed at its weekly low. The follow-up & positional short setup is the same as the one above. Just have to wait for confirmation! Again, do read the additional analysis on the chart!
TRADE SETUP - SUPPORT ZONE
My View - Bearish
That’s it from my side for the coming week as far as trade setups are concerned. I will be back again next week with multiple setups as well! Please undertake appropriate risk management while taking every trade. Stay safe from covid, & in markets too!
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Disclaimer - Charts, analysis and trading setups shared above are purely for educational & learning purposes & are not directly or indirectly any form of recommendation or advice. Please consult your financial advisor / carry out your own research before taking action in financial markets. Not SEBI Registered.