This is one of the latest entrants in the derivative segment in NSE, with a lot size of 1000. After going up for more than 20% within 10 trading sessions, there looks that some exhaustion and profit booking is on the cards. This stock could be traded for a short side if the markets continue to remain range bound with some negative sentiments.
- The short term moving average (20-EMA) is just below the medium term moving average, which could cross in the coming few sessions. But for the immediate future, the technical are suggesting some impending correction in the scrip. The prices in the range of Rs. 265-260 are quiet in a crowded zone.
- The ADX indicator is still gaining to its weight as indicated in the charts at the level of 48. A top out formation in the coming sessions would inflict the current surge. The +DI is still continuing with its downward path. The –DI is near its bottom on an intermediate timeframe. Some more sellers could increase in the coming trading sessions.
- The MACD trend indicator is on a smooth path. The MACD line is on a crossover path towards the Signal line. The trade should be developed on the side of the crossover which is favored. The MACD Histogram is also forming lower readings in every session which suggests that any close in the negative territory would highly inflict the current surge.
- The Slow Stochastic momentum indicator is still in the higher end of the indicator limits. The surge could halt if this levels flow to the below eighty level both on the absolute basis and on a relative basis, the %K line should cross the %D line.
We advise to short on the scrip in the price range in the 251.5- 253 with a strict stop loss of 1% for a price target of 242-238.
Akash Singh, Technical Analyst [Akash@hbjcapital.com], HBJ Capital Services Pvt Ltd.
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