GRANULES trade ideas
Granuels looking for further breakoutGranuels is testing top of the channel one can enter with 10% of capital above 495 ( CMP 490,) if price comes down will be deploying another 20 % capital more at 480 levels with strict sl at 468 on hourly closing basis. Targets are 500, 505, 510 and 520. Should close the trade if it given 2% returns of deployed capital.
Duration 5 trading days.
Volumes are accumulating rsi nearing 58
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GRANULES - A stock to watchThe stock after facing price rejection around 466 to 480 area was pushed down to the 200 DMA levels. It took support from there and started moving up and now it's making a higher high and higher low. The relative strength is also positive and we can see good volumes coming in. Money is flowing into the stock and the momentum is also positive and increasing. Also, we can see good increase in the delivery volumes recently indicating committed buyers stepping in. A bullish close above 480 would take the stock to the next higher trajectory.
wait for zone
this zone marked is potential reversal zone . expecting reversal from that zone.buyers can look for buying confirmation inside the zone.
-- intraday traders can keep 0.236 fib level of swing C to latest swing low. entry is strictly inside zone. keep sl below zone
-- swing traders can keep 0.5 fib level as tgt.
Granules India Long Call
Buy Entry: INR 450
Stop Loss: INR 430
Target Price: INR 530
The risk-to-reward ratio of 1:3 implies that for every unit of risk (INR 20) taken by setting the stop loss at INR 430, there is a potential reward of 3 units (INR 80), with the target price set at INR 530.
Considering the technical analysis and the risk-to-reward ratio of 1:3, let's assess the trade setup:
Based on the analysis provided, I recommend considering a long position in Granules India at around INR 450 per share. It's essential to set a stop loss at INR 430 to manage downside risk and protect capital in case of adverse price movements.
The target price of around INR 530 presents a realistic upside potential based on the technical breakout and market dynamics. This trade is positioned as a shorter-term trade, given the defined target and risk parameters.
Granules India recently experienced a significant breakout above a crucial resistance level, typically observed around INR 440-450. This breakout suggests a shift in market dynamics, indicating increased buying interest and potential bullish sentiment.
The breakout above the resistance level was accompanied by a notable surge in trading volume. Elevated trading volume during a breakout signifies heightened market participation and conviction among investors. It suggests that market participants, including institutional investors and traders, are actively accumulating shares, reinforcing the validity of the upward move.
The combination of the resistance level breakout and the surge in trading volume suggests a bullish momentum in Granules India's stock price