This stock looks to be bracing up for an upmove to give a decent Risk Reward Trade, following are the favorable conditions:
1. multiple tested lows near 98-96 range but failed to break below
2. Have just moved above the most traded zone and should hold these levels if the hypothesis is true
1. Fundamentally a good stock with good growth...
#BNF: Last week scenario II was to trade breakout above 27150 zone to test 27500 range, it went there and higher than that as well, testing yearly highs and beyond it.
Now here are the potential trade scenarios to trade the coming week:
Prices manage to respect 27570 zones and we continue to move higher to test 27900 levels- which is a retracement of last weeks...
HDFCBANK has single handedly held on banknifty so far in its run up, here is a sitaution where it marked a higher high and moved back within the range, provides a low risk contrarian trade opportunity.
can go quite ugly otherwise knowing what's its doing, still worth the try :)
turnaround if it happens in this, could also be a leading indicator on things to come...
Here is a positional trade opportunity in Reliance, which can potentially give a 2R/3R return. Long trade set up in pullbacks to 1045-1055 range with SL below 1000 range, target can be 1090 and 1140 levels
banknifty support band remains now at 26840-26890 zones, trading above that a pullback opportunity remains open.
the challenges to this are:
1. Too sharp a trendline that will become difficult to defend for momentum play
2. Trading below the previous highs of 27060. it remains in no man land.
#CL_F has couple of lows here and also has a vpoc just below todays low, that can be used as a SL(73), for a low risk pull back trade to test 73.8, 74 levels and a pullback to upper range of value area in coming sesions.
Here is a view of the NIFTY weekly charts, this shows how restricted the range has become for NIFTY over the past few weeks. There are two ideal retracement zones to look out for 10890 on the upside and 10570 on the downside. Until these ranges are cleared its best to trade for a pullback to the value areas which is in the 10740-10780 band ( in the futures).