Positional trading involves holding stocks for a few days to several weeks or months, aiming to benefit from short- to medium-term price movements. It is a strategy used by traders who do not have the time for day trading but still want to take advantage of market opportunities. This strategy focuses on capturing trends by holding positions for a longer time, hoping to profit as the stock prices move upward or downward. Positional traders usually rely on technical analysis and fundamental factors to guide their entry and exit decisions.
In this article, we will discuss positional trading opportunities for September 24, 2024. The stocks covered include DLF, POWERGRID, VIP Industries, JSW Energy, SANCO, Welspun Corp, and FSL. These stocks appear ready to break past important resistance levels, making them promising candidates for a positional trade.
Note: All the information provided is for educational purposes only. Before investing, please consult your financial advisor, as trading in the stock market involves risk.
1. DLF (Current Price: Rs. 920)
Overview
DLF, one of India’s largest real estate developers, looks attractive at the Rs. 920 level. The stock appears to be gathering momentum to break past key resistance points. The company has been showing strong fundamentals, with healthy revenue growth, ongoing projects, and positive market sentiment driving its stock price higher.
Trade Setup
- Entry Price: Rs. 920
- Stop Loss (SL): Rs. 914
- Targets:
- 1st Target: Rs. 923 (3 points)
- 2nd Target: Rs. 925 (5 points)
- 3rd Target: Rs. 927 (7 points)
- 4th Target: Rs. 929 (9 points)
- 5th Target: Rs. 932 (12 points)
- 6th Target: Rs. 935 (15 points)
- 7th Target: Rs. 940 (20 points)
Technical Outlook
DLF is trading near a key resistance level, and with strong volumes, it seems ready to break higher. If the stock moves beyond Rs. 920, it could trigger a further bullish move, offering an opportunity for positional traders to profit. Given the proximity of the stop loss at Rs. 914, the risk is limited, while the reward potential increases as the stock moves towards its higher targets.
Trading Strategy
- Hold the stock for a few days or until your desired target is hit.
- Maintain the stop loss at Rs. 914 to protect your capital.
- DLF’s ability to break past Rs. 920 with volume will be a key signal to continue holding.
2. POWERGRID (Current Price: Rs. 346.5)
Overview
Power Grid Corporation of India is a public sector enterprise engaged in the transmission of electricity throughout India. With the company’s robust performance and consistent dividend payout history, Powergrid is a steady stock for positional traders. At Rs. 346.5, the stock is poised to breach resistance levels, making it an attractive buy.
Trade Setup
- Entry Price: Rs. 346.5
- Stop Loss (SL): Rs. 344
- Targets:
- 1st Target: Rs. 347.5 (1 point)
- 2nd Target: Rs. 348.5 (2 points)
- 3rd Target: Rs. 349.5 (3 points)
- 4th Target: Rs. 350.5 (4 points)
- 5th Target: Rs. 351.5 (5 points)
- 6th Target: Rs. 352.5 (6 points)
- 7th Target: Rs. 353.5 (7 points)
- 8th Target: Rs. 354.5 (8 points)
Technical Outlook
Powergrid is trading close to its resistance level of Rs. 346.5. A breakout from this point, especially with good volumes, could lead to a price surge, making it an excellent opportunity for positional traders. The stop loss at Rs. 344 is reasonably tight, ensuring limited downside risk.
Trading Strategy
- Hold the stock for a few days until the targets are achieved.
- Ensure the stop loss is respected to avoid significant losses.
- If Powergrid breaks past Rs. 346.5 with momentum, it could see higher levels quickly.
3. VIP Industries (Current Price: Rs. 590)
Overview
VIP Industries, one of India’s leading luggage manufacturers, is showing strong potential at Rs. 590. With a diversified product portfolio and expanding market presence, VIP Industries continues to be a strong contender for growth. The stock has been consolidating and looks ready to move higher.
Trade Setup
- Entry Price: Rs. 590
- Stop Loss (SL): Rs. 570
- Targets:
- 1st Target: Rs. 620
- 2nd Target: Rs. 640
- 3rd Target: Rs. 660
- 4th Target: Rs. 700
Technical Outlook
At Rs. 590, VIP Industries has strong support, and the stock is prepared to move upward, especially with a favorable volume spike. Breaking past Rs. 590 could pave the way for higher targets, with Rs. 620 as the first key level to watch.
Trading Strategy
- Hold the stock for a few days to a few weeks, depending on how quickly the stock hits the targets.
- A stop loss at Rs. 570 provides a cushion against any unexpected downside movement.
- Continue monitoring the volume and price action for sustained momentum.
4. JSW Energy (Current Price: Rs. 800)
Overview
JSW Energy is one of India’s leading power companies. At Rs. 800, the stock is showing signs of strength, making it a good candidate for positional trading. With a strong energy demand outlook and the company’s increasing focus on renewable energy, JSW Energy could continue its upward trend.
Trade Setup
- Entry Price: Rs. 800
- Stop Loss (SL): Rs. 759
- Targets:
- 1st Target: Rs. 825
- 2nd Target: Rs. 859
- 3rd Target: Rs. 875
- 4th Target: Rs. 900
Technical Outlook
JSW Energy is trading around Rs. 800, near its resistance zone. A breakout could push the stock higher, and positional traders can benefit from a move past Rs. 825, with Rs. 900 as a longer-term target.
Trading Strategy
- Hold the stock for a few days to see if it can hit the initial target of Rs. 825.
- Adjust your stop loss upward if the stock shows strong momentum.
- The stock has potential for significant gains if it breaks the Rs. 800 barrier with volume.
5. SANCO (Current Price: Rs. 1400)
Overview
SANCO is a well-established player in its industry and has been showing promising growth. At Rs. 1400, the stock seems ready to break through a key resistance level. This trade has longer-term potential, making it suitable for positional traders with a longer horizon.
Trade Setup
- Entry Price: Rs. 1400
- Stop Loss (SL): Rs. 1350
- Targets:
- 1st Target: 25 points
- 2nd Target: 50 points
- 3rd Target: 75 points
- 4th Target: 100 points
- 5th Target: 150 points
- 6th Target: 200 points
Technical Outlook
SANCO has shown resilience at Rs. 1400. With increased buying interest and strong volumes, the stock seems poised for a rally. Positional traders looking for medium-term gains can hold the stock for several weeks to capture the full move.
Trading Strategy
- Hold the stock for a few weeks and monitor the price action closely.
- With a stop loss at Rs. 1350, the risk is minimized.
- Wait for a breakout past Rs. 1400 to confirm the upward move.
6. Welspun Corp (Current Price: Rs. 712-715)
Overview
Welspun Corp, a global leader in steel pipes, looks promising at Rs. 712-715. The stock has been moving in a consolidation phase and appears ready to break higher, with Rs. 730-750 being the short-term targets.
Trade Setup
- Entry Price: Rs. 712-715
- Stop Loss (SL): Rs. 680
- Targets:
- 1st Target: Rs. 730
- 2nd Target: Rs. 740
- 3rd Target: Rs. 750
Technical Outlook
Welspun Corp has held up well in recent weeks and is ready to challenge its resistance at Rs. 715. Positional traders can look for a breakout above Rs. 715, with targets of Rs. 730 and beyond.
Trading Strategy
- Hold the stock for a few weeks and look for an upward move toward the first target of Rs. 730.
- A tight stop loss at Rs. 680 ensures limited downside.
- This trade may suit scalping or short-term traders as well, given the price levels.
7. FSL (Current Price: Rs. 337)
Overview
FSL, a leading provider of business process management solutions, is showing strong momentum at Rs. 337. The stock is prepared to move higher, offering good potential for positional traders.
Trade Setup
- Entry Price: Rs. 337
- Stop Loss (SL): Rs. 325
- Targets:
- 1st Target: Rs. 342 (5 points)
- 2nd Target: Rs. 344 (7 points)
- 3rd Target: Rs. 346 (9 points)
- 4th Target: Rs. 349 (12 points)
- 5th Target: Rs. 352 (15 points)
- 6th Target: Rs. 357 (20 points)
Technical Outlook
FSL is trading near its key resistance level at Rs. 337. The stock has seen increased buying activity, and a move above Rs. 337 could lead to further gains. With a tight stop loss at Rs. 325, the risk is minimal while the reward potential is significant.
Trading Strategy
- Hold the stock for a few days and watch for the stock to breach Rs. 337.
- A stop loss at Rs. 325 protects against downside risk.
- The stock is likely to move quickly once it crosses Rs. 337, offering potential short-term gains.
The stocks discussed – DLF, Powergrid, VIP Industries, JSW Energy, SANCO, Welspun Corp, and FSL – show strong potential for positional trading. These stocks are poised to break past key resistance levels with good volume support, making them attractive opportunities for traders looking for short- to medium-term gains.
However, always remember that positional trading involves risks, and it’s important to set a stop loss to protect your investment. Please consult with your financial advisor before making any trades, and ensure that these trades fit into your broader financial plan and risk tolerance.
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