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. Analysis for educational purposes only!
Good Morning Traders!
In what was yet another strong week for the bulls, the Nifty index scaled another solid 350 points. As mentioned in the previous newsletter, bullish trend emerged & has continued into this week.
4 consecutive weekly green candles on the Nifty index have occurred for the first time since May-June 2021! Even so, it doesn’t look like this move is going to end anytime soon. Broader market participated very well too, with a plethora of breakouts across market segments.
In unison with the prevalent bullish trend, I have provided below only long trades, scattered across derivative & cash markets in breakout & pullback trades. Read on to find out what they are!
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! Poised at a critical juncture, this bullish setup can be undertaken with long futures or selling puts. Here it is below -
HERO MOTOCORP DEC FUTURES (CMP - 2574.3)
After a good volume backed breakout, this counter has given a pullback towards its breakout zone, where the 100-Day MA @ 2536 is also placed. Longs can be initiated at current levels, with a tight SL, taretting previous highs / resistance zones.
Positional Target - 2650 / 2760
SL - Close below 2520
Breakout Trades
In-sync with the broader market, these stocks have showed immense buying activity, with a couple of them breaking out above multi-year resistance zones as well. Seeing the volume activity, these look very bullish and poised for further upward runs. Read below to know which are those!
COSMO FILMS LTD (CMP - 1717.85)
If you remember, I had given this a couple of weeks ago in this newsletter, when it was consolidating in a falling wedge! Well, it gave the breakout & not only achieved the targets, but has given yet another breakout. Can initiate longs at current levels with fibo-based targets.
Positional Target - 1850 / 1930
SL - Close below 1600
HINDUSTAN FOODS (CMP - 2312.6)
This counter has broken out of a 11-MONTH CONSOLIDATION. This occured on low volumes, with breakout showing very strong volume activity. Can take longs at current levels with previous swing highs & beyond as targets, with SL on a weekly close basis.
Positional Target - 2580 / 2840
SL - Close below 2100
FINEOTEX CHEMICALS (CMP - 152.3)
Another heavy volume backed breakout, this stock has taken out its 4-MONTH HIGHS & is now trading at all time high levels, looking poised for further up-moves. Can initiate longs at current levels with fibo-based targets & SL on a weekly close basis.
Positional Target - 175 / 190
SL - Close below 135
DEEPAK FERTILISERS (CMP - 542.25)
My favourite of the lot, this counter has broken out above a 4-YEAR RESISTANCE, with immense volume activity, being 5x the 20-week average! Don’t miss out on this one, as it looks well set for further up-moves. Longs can be taken at current levels with fibo-based targets and SL on a weekly close basis.
Positional Target - 680 / 750
SL - Close below 410
SUNTECK REALTY (CMP - 570.7)
Another multi-year breakout, this counter has taken out a 3.5-YEAR RESISTANCE ZONE. Similar to the one above, volume activity was huge. Longs can be taken at current levels or on a pullback, with fibo-based targets and SL on a weekly close basis. Do check the chart below!
Positional Target - 690 / 760
SL - Close below 480
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 -
BALAJI AMINES (CMP - 3643.05)
After a huge breakout, this stock has retraced to the breakout zone, doing so on low and falling volume activity. Longs can be taken at current levels, targeting previous swing highs with SL on a daily close basis.
Positional Target - 4000 / 4800
SL - Close below 3450
APEX FROZEN FOODS (CMP - 338)
Similar to the one above, this stock has given a pullback near its breakout zone as well, forming a bullish flag pattern in the process. Any subsequent breakout will be fast paced, so do watch this one! Can take longs at current levels, targeting previous swing highs with SL on a daily close basis.
Positional Target - 510 / 590
SL - Close below 473
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 as well!
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Disclaimer - Charts, analysis and trading ideas shared above are purely for educational purposes. Please consult your financial advisor before taking action in financial markets.