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 a short yet eventful week, as per expectations, the prevalent bearish trend in the benchmark nifty index explained in my previous newsletter came to fore, with it dropping almost 300 points, and closing just shy of its weekly low. The fact that it was a truncated week may have played a part, but the bigger picture remains the same and we must be on the lookout for further downside to follow.
Nevertheless, there are always pockets of strength present in the broader market where large presence of market movers can be detected & plays can be made. This time, it was paper, energy & export oriented stocks which led the 3-day proceedings. It was enough to provide yet another curated collection of good actionable setups which I have provided below. Read on to find what they are!
FnO Space
I have provided only a single setup in this section. This one is showing very interesting dynamics, is precariously poised and can give a move either way. Here it is below -
AMBUJA CEMENT APRIL FUTURES (CMP - 370.55)
Placed right at a critical resistance zone as well as its 200-MA above, interesting thing is OI buildup has been immense recently and any sustained move above 375-380 can trap critical amount of call writers. It can reverse from here as well if the resistance holds up, leading to addition of call writers. Do read the chart for full analysis!
TRADE SETUP - POTENTIAL BREAKOUT / REVERSAL
My view - Wait & watch for trend to emerge
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.
JASH ENGINEERING (CMP - 689.7)
Showing a beautiful breakout from a base formation on the weekly chart, this one has entered all-time-high territory doing so on strong volumes. Base formation was on low volume as well. Ticks all boxes. Check the chart!
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
SESHASAYEE PAPER (CMP - 202.55)
Another beautiful breakout, this counter has broken above a crucial resistance zone from where it turned 4 times (marked in chart) as well as a triangle consolidation. Volume has been ample to go with it as well where on the flipside it was dull during the consolidation. Very nice setup!
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
Breakout Retest Trades
While some stocks as those given above have given breakouts, few have already boarded the train, and are now giving a revisit to their breakout stations! 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 -
CENTURY TEXTILES (CMP - 899.85)
After a good breakout above a crucial resistance zone, this stock has retraced towards the breakout zone, doing so on very low volume. With a very good R:R, this looks set to resume its upward trend again.
I have already taken a trade here, with the red line marked being my SL. See the chart for it!
TRADE SETUP - PULLBACK / RETEST
My View - Cautiously Bullish
SYNGENE INTERNATIONAL (CMP - 637.65)
In a similar fashion to the one above, this counter has given a pullback near its breakout zone with very low volumes. Although I haven’t taken a trade here, I have marked a red line below which I would ideally place my SL. Another favourable R:R setup. Do check the chart!
TRADE SETUP - PULLBACK / RETEST
My View - Cautiously Bullish
Potential Breakout Stocks
These stocks are poised to give substantial moves depending on whether they significantly break their zones with good volumes. Here are a few setups which can be added to the watchlist to watch for breakouts and catch the ensuing up-move, or play the reversal on the downside with favourable R:R.
AVADH SUGAR (CMP - 823.10)
This counter is on the verge of breaking out above its most recently set highs. Although it has already given a new record close, it is yet to substantially clear the zone. Volume has picked up hinting that the breakout may soon occur. Watch out for this one.
TRADE SETUP - POTENTIAL BREAKOUT / REVERSAL
My View - Wait & watch
JSW STEEL (CMP - 766.35)
This one is placed right at its previous highs right back in 2021. Crucially, it has faced resistance here thrice already, with this being the 4th time. Any reversal signs may give a good short trade, whereas a breakout can prove to be substantial move upwards as the chart referred to is the weekly one. Larger time frame moves tend to be very strong. Do watch this carefully!
TRADE SETUP - POTENTIAL BREAKOUT / REVERSAL
My View - Wait & watch
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!
If you liked the content, do subscribe to get weekly trading setups & please share it with your peers / friends / colleagues who love trading too! As always, feel free to drop any comments regarding what can be improved, or any new ideas that can be put forth.
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.