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!
In what was yet another positive week which also marked the end of the FY21-22, Nifty index gained some 500 points. As discussed in my previous newsletter, last week was more of a halt rather than reversal signs. It has also managed to close above the 20-Week MA, which will act as a short support from here as well!
Again, the broader trend remains bearish in a Lower-High Lower-Low structure on the weekly chart, until the index closes above 18350; long way to go! The broader market was flourishing with strong buying activity seen across the board except metals & sugar stocks, which saw some profit booking. Paper, energy, pharma & banks were the torch bearers.
This resulted in numerous bullish structures & breakouts, which have made their way into this edition! Such setups coupled with some consolidations on the verge of breaking out make the list of setups presented today. Read on to find what they are!
FnO Space
I have provided only a single setup in this section, reason being I didn’t find any other favourable risk-reward trade! A setup showing superb strength & suggests more to come. Here it is below -
NTPC APRIL FUTURES (CMP - 143.45)
This counter has broken above a strong resistance zone, with huge buildup in OI as well as put writing & trapped call-writers. Everything points strongly in only one direction - upwards. Check the chart below & do read the analysis!
TRADE SETUP - BREAKOUT
My View - Bullish
Breakout Trades
These stocks have showed immense buying activity, breaking above crucial resistance zones or patterns! Some also heading into blue-sky zone, i.e. All-Time-High territory! Seeing the volume activity, these look very bullish and poised for further strong upward runs.
VIDHI SPECIALTY FOODS (CMP - 459.6)
A double breakout, it has broken above it’s resistance zone, as well as from a continuation inverse H&S Pattern. Volume activity has been very high as well. Check the chart below to see what a beautiful breakout it is! Disc - I took up some positions on Friday itself :D
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
GSFC (CMP - 174.05)
Another wonderful breakout, this stock has closed at its highest ever level. It has broken above a Multi-Year Resistance. The best part? Volumes of the weekly candle are HIGHEST EVER! Promising. Do check the chart below.
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
CANTABIL RETAIL (CMP - 1002.65)
Another stock entering all-time-high territory, this stock has broken above a strong resistance zone which it couldn’t break for 5 times. Volumes have been 3x times it’s 20-Day Average. Strong Breakout & expect upward momentum to continue.
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
Stocks-In-Consolidation
These stocks are trading in defined ranges and are poised to give substantial moves depending on which side they break their zones. Here are a few setups which can be added to the watchlist to watch for breakouts and catch the ensuing up-move!
20 MICRONS LTD (CMP - 81.20)
This stock is on the verge of a good breakout. In what appears to be wayward cup-handle pattern, volumes have been low through the consolidation, until recently picking up as it approaches the resistance zone. It has also closed above its 50-Day MA. Watch closely for the breakout!
TRADE SETUP - CONSOLIDATION
My View - Cautiously Bullish
TEXMO PIPES (CMP - 83.40)
In a very similar fashion to the one above, this stock has consolidated in a cup-handle pattern too, and this one has also shown strong volume activity as it approaches the resistance zone. Yes, even this has managed to close above its 50-Day MA. Almost an exact copy of the one above. Do keep a keen eye for this one as well.
TRADE SETUP - CONSOLIDATION
My View - Cautiously Bullish
RASHTRIYA CHEM & FERT (CMP - 94.6)
This stock is placed right at its multi-year resistance zone, which it hasn’t been able to break in 4 previous attempts. This time, things could turn out different! Here’s why - Weekly Volume is HIGHEST EVER. On the daily timeframe it has already given a breakout too. Weekly close near it’s high as well. Do watch this one. Can be huge.
TRADE SETUP - CONSOLIDATION
My View - Cautiously 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.