Trade Setups: August 17, 2018
Trade Picker | Aug 16, 2018 12:59PM ET
IDFC
IDFC (NS:IDFC) has seen good consolidation over the last few weeks. We’ve seen prices rebound from lows near the 43 level. Now, we see IDFC put in a cup and saucer. A break if the 51.5 levels could trigger prices as high as 60 with 56 as the intermediate target. We expect IDFC to rise once it breaks the 51.5 levels and hence seems like a potential long.
STRIDES SHASUN
Strides Shasun (NS:STSA) has been stuck in a channel since its crash over two months ago. There is some potential for a rebound if it can break resistance near the 440 region. The moving averages are nicely aligned to the base of the candle indicating a possible move higher in the near term.
When we see the monthly chart, we can see that the moving averages are extended towards the downside. We see an inside month break towards the upside. There is huge upside potential here with 800 on the cards.
CONTAINER CORPORATION OF INDIA
CONCOR has a weak looking chart, which is choppy on the daily time-frame. It is important to have correct stops for a name like this since it can easily move in one particular direction once the choppiness ends. Currently, the chart is showing a lot of weakness with rejections every time the price tries to move higher. We would like to play this by shorting some in the money calls to try to take advantage of the price decay and at the same time capture some of the move lower. It is important to have stops at pivots on the daily, currently a the pivot lies at 665.
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EICHER MOTORS
Eicher Motors (NS:EICH) has a head and shoulder type structure with a choppy chart. There is price rejection each time it tries to move higher. We would play this by shorting some in the money call options and try to take advantage of the time decay. Prices seem to be heading to the base of the head and shoulder type structure near 26000.
JUBILANT FOODWORKS
The price fails to sustain every time it makes new highs. This may indicate a reversal for Jubilant. There could be a short opportunity at the break of the current consolidation near the 1485 region.
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