Reliance Poll and Flag Breakout for swing trading
Why this trade?
Technical Data:
1. Reliance was holding 2040-2050 very strongly despite of large move in the last few months. Also in the market of uncertainty.
2. We saw one way rally from 1611 to the 2198.90 when it breaks ATH of 21st January.
3. The most interesting thing is consolidation on higher levels for 30 trading sessions ( over 42 days ) and it never close below 2000 in this period. This is clearly showing strength.
Fundamental/News :
1. Recent acquisition of future group & silver lake's as first investor in the Reliance retail shows mostly all strategic investment announcement most likely to done in upcoming days.
2. Valuation of R-Retail is really very good & could be the larger than RJIO.
Thought Process:
Many was thinking to buy below 2000 or at 1800 levels after big run. Similarly one could think to buy at 2200 level when it will move to 2600. No one can predict up/down move of stock. Basic thing when investor like Silverlake investing at current valuation then it may have probability to get multi fold returns in upcoming years. Usually private equity funds interested larger returns. They avoid to play for less marginal returns. So in short, current valuation is not really overrated as everyone is talking.
Targets/Stoploss:
Time frame : Next 18-22 trading sessions ( Analyzing )
Entry: Above 2170 on closing basis
Target: 2595 ( Decide using poll-flag pattern. )
Stoploss: 2040-2050 ( Current swing low )
RR: 3.15
Technical Data:
1. Reliance was holding 2040-2050 very strongly despite of large move in the last few months. Also in the market of uncertainty.
2. We saw one way rally from 1611 to the 2198.90 when it breaks ATH of 21st January.
3. The most interesting thing is consolidation on higher levels for 30 trading sessions ( over 42 days ) and it never close below 2000 in this period. This is clearly showing strength.
Fundamental/News :
1. Recent acquisition of future group & silver lake's as first investor in the Reliance retail shows mostly all strategic investment announcement most likely to done in upcoming days.
2. Valuation of R-Retail is really very good & could be the larger than RJIO.
Thought Process:
Many was thinking to buy below 2000 or at 1800 levels after big run. Similarly one could think to buy at 2200 level when it will move to 2600. No one can predict up/down move of stock. Basic thing when investor like Silverlake investing at current valuation then it may have probability to get multi fold returns in upcoming years. Usually private equity funds interested larger returns. They avoid to play for less marginal returns. So in short, current valuation is not really overrated as everyone is talking.
Targets/Stoploss:
Time frame : Next 18-22 trading sessions ( Analyzing )
Entry: Above 2170 on closing basis
Target: 2595 ( Decide using poll-flag pattern. )
Stoploss: 2040-2050 ( Current swing low )
RR: 3.15
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