Positional trading involves holding positions in financial instruments for an extended period, typically ranging from weeks to months. This strategy capitalizes on significant price movements and trends, allowing traders to benefit from the broader market cycles.
In this detailed article, we will examine positional trading opportunities in eight specific stocks: Zomato, Amara Raja, PNB Gilts, Gabriel India, AU Small Finance Bank, HDFC AMC, Godrej Agrovet, and Wockhardt Pharma. Each stock has been selected based on technical analysis indicators suggesting potential upward movement.
Zomato (NSE: ZOMATO)
Entry Point: Above ₹202
Stop Loss (SL): ₹180
Targets: ₹210, ₹215, ₹220, ₹225, ₹230, ₹235
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: Zomato is showing signs of a reversal from its recent lows, indicating potential for upward movement.
Relative Strength Index (RSI): The RSI is shifting upward, signaling increasing buying momentum.
Volume: Increased volume indicates strong investor interest, supporting the likelihood of a sustained breakout.
Zomato, an online food delivery service, has experienced significant volatility.
The recent consolidation and breakout signal a potential for growth. Traders should watch for sustained movements above ₹202 to confirm the bullish trend.
Amara Raja Batteries (NSE: AMARAJABAT)
Entry Point: Above ₹1550
Stop Loss (SL): ₹1520
Targets: 15, 30, 45, 60, 75, 90 points from entry
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: The stock shows a clear reversal pattern, indicating the end of a bearish phase.
RSI: The RSI moving upward suggests growing bullish sentiment.
Volume: Significant volume spikes reinforce the breakout potential.
Amara Raja Batteries, a leading battery manufacturer, benefits from strong market demand for automotive and industrial batteries. Technical indicators suggest a favorable entry point for positional traders above ₹1550.
PNB Gilts (NSE: PNBGILTS)
Entry Point: Above ₹139
Stop Loss (SL): ₹135
Targets: ₹142, ₹144, ₹146
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: PNB Gilts is reversing from its lows, indicating potential price recovery.
RSI: An upward-moving RSI highlights increasing buying pressure.
Volume: Enhanced trading volume supports the bullish outlook.
PNB Gilts, a subsidiary of Punjab National Bank, deals in government securities. The technical setup suggests an entry above ₹139, with modest targets reflecting a conservative trading approach.
Gabriel India (NSE: GABRIEL)
Entry Point: Above ₹465
Stop Loss (SL): ₹456
Targets: ₹470, ₹475, ₹480, ₹485, ₹490, ₹495, ₹500, ₹505, ₹510, ₹515
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: The stock is recovering from a bottom, signaling a potential upward trend.
RSI: A rising RSI confirms growing buying interest.
Volume: High trading volume supports a bullish continuation.
Gabriel India, an automotive component manufacturer, has shown resilience. The breakout above ₹465 could signal a strong uptrend, making it a suitable candidate for positional trading.
AU Small Finance Bank (NSE: AUBANK)
Entry Point: Above ₹688.5
Stop Loss (SL): ₹670
Targets: ₹695, ₹700, ₹710, ₹720, ₹730
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: The stock is in a recovery phase, indicating potential for growth.
RSI: Upward movement in RSI suggests increasing bullish momentum.
Volume: Rising volumes are a positive sign of strong investor interest.
AU Small Finance Bank, focused on providing banking services to underserved segments, has a promising outlook. A breakout above ₹688.5 could lead to further gains.
HDFC Asset Management Company (NSE: HDFCAMC)
Entry Point: Above ₹4075
Stop Loss (SL): ₹3800
Targets: ₹4200, ₹4300, ₹4400, ₹4500
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: Signs of reversal indicate the end of the bearish phase.
RSI: The RSI’s upward trajectory confirms increased buying interest.
Volume: Enhanced trading volume supports a bullish breakout.
HDFC AMC, a leading mutual fund manager, shows potential for substantial gains. A confirmed breakout above ₹4075 could drive the stock higher, making it an attractive option for positional traders.
Godrej Agrovet (NSE: GODREJAGRO)
Entry Point: Above ₹650
Stop Loss (SL): ₹620
Targets: ₹675, ₹700
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: The stock is recovering from a low, suggesting an upward trend.
RSI: The RSI is moving higher, indicating growing buying momentum.
Volume: Increased volume highlights strong market interest.
Godrej Agrovet, an agribusiness company, has shown resilience. A move above ₹650 could trigger further upside, making it a solid candidate for positional trading.
Wockhardt Pharma (NSE: WOCKPHARMA)
Entry Point: Above ₹625
Stop Loss (SL): ₹580
Targets: ₹675, ₹700, ₹750, ₹800
Holding Period: Few weeks
Technical Analysis:
Reversal from Bottom: The stock is rebounding from a bottom, signaling potential growth.
RSI: The RSI’s upward movement confirms increased buying pressure.
Volume: High volume supports the bullish outlook.
Wockhardt Pharma, a pharmaceutical company, shows strong technical indicators for a potential breakout. A confirmed move above ₹625 could lead to significant gains.
Positional trading offers an effective strategy for capitalizing on medium-term trends and price movements. Each of the stocks discussed—Zomato, Amara Raja, PNB Gilts, Gabriel India, AU Small Finance Bank, HDFC AMC, Godrej Agrovet, and Wockhardt Pharma—presents unique opportunities based on their technical setups. Traders should carefully monitor the entry points, stop losses, and target levels outlined to maximize their returns.
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