Short Term Trading Strategies for HDFC & CG Power 5/5 (1)

Trading Calls

Indian Markets are soaring to new heights and the bulls are playing at forefront since the last few weeks. I have picked 2 stocks from Banking and Power sector for short term gains.

HDFC

HDFC Twins from banking sector are the stocks that have multiplied investors capital at a significant rate. Here, I have picked HDFC as the short term pick for April series. The stock is already trading above 2050/- odd levels but have the momentum to surpass new highs soon.

Over the last five sessions, the counter has shown a strong spurt of buyers which also coincided well with the uptrend witnessed in the underlying Banking index.  Daily charts of the stock shows a Rectangle continuation pattern, resistance of which stands at 2067 levels. Breach of this level decisively would indicate a new set of buyers.

The strength of the trend is also indicated in ADX , which shows a value above 25, indicating a strong trend in place.(Learn more about Indicators in our Basic Technical analysis Module. Check this link for details).

My outlook for the stock in Short Term & Medium Term is Positive.

Trading Levels for HDFC

Technical Pattern: Rectangle Pattern

Action
Trigger Price
Stop Loss
Target 1
Target 2
BUY >2067 2045 2085 3010

Check out our Short Term Trading Performance for calls released in January, 2019

CG Power

I have been maintaining SELL view on this stock since 2017 when the stock was trading 80 odd levels ( check this link for details). Despite the strong retracement witnessed in the stock the counter is still under bears’ grip and is trading in a consistent downtrend. Every bounce back in the counter is sold into. The negative sentiment prevailing in the counter in also indicated by trend indicator, MACD which as of now, is indicating a Sell signal. (Learn more about MACD in our Advanced Technical analysis Module. Check this link for details).

My outlook for the stock in Short Term & Medium term is Negative.

Technical Pattern: MACD Sell

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <38.20 40 36 34

Also, Check out ‘Top 2 sectoral short term trading ideas in this link’

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The above analysis is based on closing prices as on 6th April, 2019 & Trading levels mentioned in the post are valid upto 1 month

Disclaimer: All views expressed in this site are for reference only. Readers must consult their own investment adviser  before taking any investment/trading decision. We hold no financial liability to any user on account of use of information provided on this website.

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Author: Traders' Chowk

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