Trading Setups For the Coming Week
Sharing actionable trading setups with detailed charts in both Cash & Derivative markets to set you up for the following week.
Good Morning Traders!
Wishing everyone a very happy new year. I hope this year brings you the best in terms of trading & investing too!
Lets jump back in the markets. As highlighted in the previous newsletter , Nifty ended this week in green as well. While the bearish trend is yet to change in the benchmark index, broader market was strikingly strong within pockets throughout the week, with the IT index scaling record highs.
Breakout stocks were aplenty, with some hitting all-time highs & others coming out of their bearish trends. A couple of those are given below, with the usual mix of derivative trades and watchlist-worthy stocks.
Read on to find out!
FnO Space
I have provided below 2 setups, of which one is actionable right away, with the other being poised at a critical juncture, where a very high-probability trade can be undertaken. Here are those below -
NTPC JAN FUTURES (CMP - 123.5)
On the weekly chart (cont), this counter is showing bullish reversal signs at a crucial level of 120-123, where lies additional supports of the 50 & 200 week MA, as well as an important trendline support. Longs can be taken at current levels.
Positional Target - 150
SL - Close below 110.
POWER GRID JAN FUTURES (CMP - 205.2)
This one is placed at it's crucial resistance zone @ 209-213, with the 30-day high @ 211 & the maximum call OI sitting at 210 as well. Any breakout above this zone will give a superb opportunity to go long in futures or selling puts. Any signs of reversal from the resistance zone will provide opportunities to short calls. Do keep a lookout for this one! Very interestingly poised.
Breakouts / Breakout Retest
In-sync with the broader market, these stocks have showed immense buying activity, with one breaking out above a multi-year resistance zone along with one revisiting it’s previous breakout zone. Seeing the volume activity, these look poised for further upward runs. Read below to know which are those!
BIRLA CABLES (CMP - 104.5)
This stock has broken out of a double bottom on the weekly charts, which indicates a change in trend to bullish, and looks well poised to scale it’s previous swing high. One can initiate longs at current levels.
Positional Target - 125
SL - Close below 90.
BALAJI AMINES LTD (CMP - 3409.8)
This stock has broken out of a symmetrical triangle consolidation with strong volume activity. It signifies a change in trend to bullish. Low volume consolidation with a high-volume breakout gives a high-probability trade. Longs can be taken at current levels.
Positional Target - 125
SL - Close below Upper trendline of triangle.
NIIT LIMITED (CMP - 451.3)
This counter has given a low-volume pullback towards it’s previous breakout zone @ 435-445. High volume breakout followed by a low volume pullback makes this a very favourable Risk:Reward trade. Longs can be initiated at current levels. Target previous swing highs.
Target @ 490/520
SL = Close below 430
BGR ENERGY SYSTEMS (CMP - 85.8)
This particular stock has given a MULTI-YEAR BREAKOUT, with the weekly candle also being a bullish marubozu (closing at the weekly high). This makes it a very bullish counter with strong momentum. Positional longs can be initiated at current levels. Do check the chart below.
Target = 120/165
SL = Close below 70
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, or exit existing positions is case of a breakdown from the consolidation.
VOLTAS LTD (CMP - 1219.15)
This stock has been consolidating for the past one month and a half, doing so in a symmetrical triangle pattern. Consolidation has occurred with low volume activity, giving importance to the side it will break through. Idea is to take longs once a breakout occurs, or exit existing holdings / taking shorts if a breakdown occurs.
Target = 150 points from breakout / breakdown
SL = Close below upper trendline for breakout, Close above lower trendline for breakdown.
COSMO FILMS LTD (CMP - 1397.4)
This counter is consolidating in a Falling Wedge Formation, which is inherently bullish. Breakout from such will bring bullish trend. One has to be patient though after a breakout, as price takes some time to achieve the target here. One can take longs post a breakout, or exit holdings if a breakdown occurs.
Target = 150 points from breakout / breakdown zone.
SL = Close above / below the lower / upper trendline in case of breakdown / breakout respectively.
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 comments regarding what can be improved, or any new ideas that can be put forth.
Disclaimer - Charts, analysis and trading ideas shared above are purely for educational purposes. Please consult your financial advisor before taking action in financial markets.