Positional Trade Strategy for ICRA Ltd:
Entry Point: Enter the trade around the current price level of 6,446 INR or on a slight pullback towards the breakout level near 6,400 INR.
Stop Loss: Set a stop loss below the breakout zone to manage risk in case of a false breakout. A suitable stop loss could be around 6,200 INR, considering the previous support level just below the breakout point.
Target Price:
First Target: 6,800 INR - This is a conservative target based on the breakout strength and the stock's previous price action.
Second Target: 7,000 INR - A more aggressive target, taking into account the stock's potential to continue the uptrend with momentum from the breakout.
Time Horizon: Since this is a positional trade, the holding period could range from a few weeks to a couple of months, depending on how the price action develops.
Volume Confirmation: The breakout has occurred with decent volume, which is a positive sign. Continue to monitor volume levels; rising volumes on upward moves would confirm the breakout strength.
Risk Management: Use an appropriate position size based on your risk tolerance, considering the defined stop loss level.
Additional Considerations:
Keep an eye on broader market conditions and any specific news related to ICRA Ltd, as these can impact the stock's performance.
Watch for any retests of the breakout level, which can offer additional entry points if the breakout holds.
This strategy is based on the technical analysis of the breakout pattern shown in the chart. Adjustments should be made according to your risk management and investment objectives.
