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!
There is good news! Nifty ended in green for the third week in a row, and in the process managed to break the lower-high lower-low structure. What does it mean? The bearish trend is over. Here come the bulls!!
While only a couple of breakouts were given in the previous newsletter, for this one, I will be sharing only breakout stocks! The broader market performed in almost every segment, providing multiple breakout setups.
A pullback on the index would be a very good opportunity to load up longs. While that is yet to occur, here are some actionable setups which can be taken advantage of right away. 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. Both are bullish setups & can be undertaken with long futures or selling puts. Here are those below -
HINDALCO JAN FUTURES (CMP - 494.15)
This counter has taken out a short resistance zone @ 483-487, with increase in OI as well by 4%. Can initiate longs at current levels, targeting previous swing highs. Can take longs on any pullback as well. Do check the chart below.
Positional Target - 510/590
SL - Close below 473
ONGC JAN FUTURES (CMP - 157.15)
This counter is placed right at its resistance zone @ 154-157. It looks very likely to give a breakout, with more than 10% increase in Open Interest. Longs can be taken at current levels with an very good R:R, targeting previous swing highs. Checkout the chart to gain a clear view.
Positional Target - 170
SL - Close below 150
Breakout Trades
In-sync with the broader market, these stocks have showed immense buying activity, with one breaking out above a multi-year resistance zone as well. Seeing the volume activity, these look very bullish and poised for further upward runs. Read below to know which are those!
SPARC (CMP- 327.15)
This counter as broken above a 5-month resistance zone, doing so with volumes which are almost 4 times the 20-Week average! Breakout being on the weekly chart gives it even more significance. Can take longs at current levels wit previous tops/highs as targets.
Positional Target - 410
SL - Close below 295
ASAHI INDIA GLASS (CMP - 532.05)
This stock as broken out from a consolidation spanning a couple of months, doing so with sharp rise in volumes. It as also closed at its highest level. Longs can be taken at current levels with price pattern as well as fibo-based targets. Check the chart below!
Positional Targets - 600/660
SL - Close below 485
RACL GEARTECH LTD (CMP - 728.15)
Similar to the one above, this counter as also given a breakout above its resistance zone with very fine volume activity, signalling that further upward move is to follow. One can initiate longs at current levels with fibo based targets positionally.
Positional Target - 810
SL - Close below 660.
NITIN SPINNERS LTD (CMP - 301.65)
This stock has shown beautiful price action, with it forming multiple round bases, before taking out its resistance zone on heavy volumes. Personally very bullish on this one! Looks perfectly set for a good upward run. Longs can be taken at current levels with fibo-based targets.
Positional Target - 410
SL - Close below 270.
ROLEX RINGS LTD (CMP - 1282.7)
Another counter with beautiful price action, this as closed above its resistance zone as well as its listing day high, thereby closing at its highest level. Volume activity is also huge, with breakout-day volume being 5 times the 20-day average. Can totally initiate longs at current levels with fibo-based targets.
Positional Target - 1370/1520
SL - Close below 1200.
OM INFRA LTD (CMP - 49.15)
Saving the best for the last, this counter has given a multi-year breakout, with volume activity being massive. Very similar to the BGR Energy chart given last time, which zoomed close to 50% in a week, this can provide a similar type of run! Can initiate longs at current levels or on a pullback, with previous tops/highs as targets.
Positional Target - 80
SL - Close below 35.
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 ideas shared above are purely for educational purposes. Please consult your financial advisor before taking action in financial markets.