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 week filled with ever-increasing volatility, but this time the outcome was positive! The Nifty 50 benchmark dipped more than 1000 points from last week’s close, yet managed to close way above from where it did last week, forming a Bullish Engulfing Candle in the process. This could hint at a short bounce from here. Good News :D
Broader market was a similar story as well, with the market-wide breadth being in favour of the bulls. There were select pockets such as paper & sugar stocks showing sharp & sweet buying activity. (I hope you get what I did there)
In parlance with the above, breakout setups make a roaring comeback in this week’s edition, complementing the pullback trades. Read on to find out what they are below!
FnO Space
I have provided only a single setup compared to the usual norm of 2, reason being I didn’t find any other favourable risk-reward trade! A setup showing considerable weakness. Here it is below -
BRITANNIA MARCH FUTURES (CMP - 3213.55, NSE)
This counter has given a significant breakdown from a very crucial support zone which held for the last 10 months. Selling has occurred on above-average volumes. It has also closed below its 200-WEEK MA.
TRADE SETUP - BREAKDOWN
My View - Bearish
Breakout Trades
In-sync with the broader market, these stocks have showed immense buying activity, breaking above crucial resistance zones or patterns! Seeing the volume activity, these look very bullish and poised for further upward runs.
CIPLA LTD (CMP - 1043.9, NSE)
This stock has broken out of an 10-Month Consolidation. This has occurred with good volumes, also taking it to it’s all-time high levels in the process. Take a look at the chart below!
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
BALRAMPUR CHINI (CMP - 487.35, NSE)
Another stock entering the blue-sky zone (all-time high), it has broken out from a 3-Month consolidation, with the breakout occurring on HUGE VOLUMES. Yes, I typed it in Uppercase to emphasize the importance of it! Look at the chart and gauge it for yourself.
TRADE SETUP - BREAKOUT
My View - Heavily Bullish
AVADH SUGAR ENERGY (CMP - 701, NSE)
Another stock from the sugar sector, another sweet breakout! AND yet another one entering its all-time high zone. A classic low-volume consolidation followed by a high-volume breakout. It doesn’t get any better than this.
TRADE SETUP - BREAKOUT
My View - Heavily Bullish
MAITHAN ALLOYS LTD (CMP - 1284.8, NSE)
Yes you guessed it, another blue-sky zone stock. Huge volume breakout, taking the counter out of an 8-Month Consolidation zone. Volume has been highest in 10-months as well. Looks very neat.
TRADE SETUP - BREAKOUT
My View - Bullish
Breakout Retest / Support Zone Trades
While some stocks as those given above have given breakouts, few are giving a revisit to their previous breakout / strong support zones. Such setups offer very good risk-reward trades and can be traded with conviction if the chart elements are favourably placed. Here are a few of them given below -
SAINT-GOBAIN SEKURIT (CMP - 80.55, BSE)
This stock has given a nice pullback after a multi-year breakout. A classic pullback occuring on low & falling volumes, it has also made a bullish engulfing candle, hinting that bullish trend can resume. Weekly chart hints at the resistance-turned-support zone being very strong. See chart below!
TRADE SETUP - PULLBACK / RETEST
My View - Bullish
S.P.APPARELS LTD (CMP - 403.7, NSE)
This stock is currently placed near a very strong support zone. The selling which took it down from its previous highs was very light in volume hinting that strong hands are still in play here. It has also made a bullish engulfing candle, indicating that the uptrend can resume from here.
TRADE SETUP - SUPPORT / SWING
My View - Bullish
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, & 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.