Fair to say that the market seemed to be in a rush today (Nifty +1.6%). Sector split below:
Don’t forget that this is only the 2nd day of rally post the sell off that started last week. Volume on both up days was < volume on down days as shown below. 11302 is a key level to watch, it will guide us whether putting risk back on is appropriate.
Few stocks that seemed interesting today:
Granules: strong price action following the gap up day on Friday. Can potentially use SL @ 380-382.
Vaibhav Global: It’s potentially setting up to breakout higher. Can use SL @ 1800-1780 range. It’s a low liquidity stock, hence more appropriate for retail size.
Garware Technical Fibres: Broke out today from previous highs on strong volume. Can use SL @ 2015.
Tasty Bite Eatables: It got quite beaten down in the sell off and moved below 200 DMA. Today it managed to stay above 200 DMA for 2nd consecutive day which indicates that the downtrend is probably over in this name for the medium term. (SL @ 10510)
Be careful with adding new positions at this time. If you feel you are forcing trades at this time, it is better to sit it out. Highly likely that the trades taken in this environment will be shaken out.
All the best!
Charts sourced from investing.com
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: This is not investment advice, please do your research before committing capital. Stop loss levels mentioned are indicative for the risk I would be willing to commit on these trades with my trading style. Everyone’s different, commit what you can stomach losing.