Positional trading offers traders the opportunity to capitalize on medium-term market trends by holding positions for several days or weeks. In this article, we’ll explore a selection of potential positional trades for the upcoming week, analyzing each trade’s entry and exit points, risk management parameters, and underlying market dynamics.
Shriram Finance (Above 2660)
Entry: Above 2660
Stop Loss (SL): 2630
Target: 15-90 points from entry
Hold: Few days
Rationale: Shriram Finance has shown signs of bullish momentum, particularly above the 2660 level. This indicates a potential breakout from previous resistance levels. Strong volumes accompanying the price movement further support the bullish outlook. The stop loss at 2630 ensures that potential losses are limited if the trade moves against expectations. The target range of 15-90 points provides flexibility for profit-taking at different stages of the price movement.
NTPC (Above 380.5)
Entry: Above 380.5
SL: 376
Target: 2-15 points from entry
Hold: Few days
Rationale: NTPC is exhibiting bullish tendencies, particularly above the 380.5 mark. This suggests a potential uptrend in the stock’s price. Positive technical indicators, such as moving averages and momentum oscillators, further support the bullish thesis. The stop loss at 376 helps manage risk by limiting potential losses in case the trade doesn’t materialize as expected. The target range of 2-15 points offers a conservative approach to profit-taking.
Coal India (Above 461)
Entry: Above 461
SL: 455
Target: 3-20 points from entry
Hold: Few days
Rationale: Coal India is positioned for a potential breakout above the 461 level, indicating renewed buying interest. This breakout is supported by robust volumes, suggesting strong participation from traders and investors. The stop loss at 455 acts as a protective measure to mitigate downside risk. The target range of 3-20 points allows for capturing profits at various stages of the price movement, depending on market conditions.
Torrent Pharma (Above 2735)
Entry: Above 2735
SL: 2715
Target: 10-90 points from entry
Hold: Few days
Rationale: Torrent Pharma is displaying bullish momentum above the 2735 level, signaling a potential uptrend in the stock’s price. This bullish outlook is reinforced by positive technical indicators, such as moving averages and relative strength. The stop loss at 2715 helps manage risk by limiting potential losses if the trade reverses. The target range of 10-90 points provides flexibility for profit-taking as the price moves higher.
Cummins (Above 3365)
Entry: Above 3365
SL: 3335
Target: 15-200 points from entry
Hold: Few days
Rationale: Cummins is poised for an uptrend above the 3365 level, supported by strong volumes and positive technical signals. This bullish bias is corroborated by favorable market conditions and sectoral trends. The stop loss at 3335 acts as a safety net to protect against adverse price movements. The wide target range of 15-200 points allows for capturing substantial profits as the trade progresses.
Bombay Dyeing (Above 180)
Entry: Above 180
SL: 170
Target: 185-220
Hold: Few weeks
Rationale: Bombay Dyeing has shown a reversal from the bottom above the 180 level, indicating a shift in market sentiment. This reversal is supported by positive divergence in the RSI indicator, suggesting strengthening bullish momentum. The stop loss at 170 helps mitigate downside risk in case of a reversal in the stock’s price. The target range of 185-220 offers potential upside targets based on historical price action and resistance levels.
Titagarh (Above 1085)
Entry: Above 1085
SL: 1065
Target: 1110-1200
Hold: Few days
Rationale: Titagarh is displaying bullish momentum above the 1085 level, signaling a potential uptrend in the stock’s price. This bullish bias is supported by positive technical indicators and increasing volumes. The stop loss at 1065 serves as a protective measure to limit potential losses if the trade doesn’t materialize as expected. The target range of 1110-1200 offers potential profit-taking levels based on historical price patterns and resistance zones.
REC Ltd (Above 566)
Entry: Above 566
SL: 558
Target: 4-50 points from entry
Hold: Few days
Rationale: REC Ltd is positioned for a potential breakout above the 566 level, indicating renewed buying interest. This breakout is supported by strong volumes and positive technical signals. The stop loss at 558 helps manage risk by limiting potential losses in case the trade reverses. The target range of 4-50 points offers flexibility for profit-taking at different stages of the price movement, depending on market conditions.
Positional trading offers traders the opportunity to profit from medium-term market trends by holding positions for several days or weeks. Each of the identified trades presents a unique opportunity based on technical analysis, volume patterns, and breakout signals. However, it’s crucial for traders to conduct their own research, define risk management parameters, and consult with financial advisors before executing any trades. Remember, all trading involves risks, and prudent risk management is essential for long-term success in the financial markets.
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