HINDALCO
Hindalco Industries (NS:HALC) has bounced back strongly from its lows near the 190 region. It has sustained every move higher after posting lows. What we currently see on that charts is an inverted head and shoulders which is usually a bullish signal. The neck-line lies near the 230 region. A clean break above the 230 region may propel Hindalco towards the 255-260 region. We see the moving average is nicely lined up to the base of the consolidation which happens to be one of the shoulders. This is a good sign for a move higher.
- Trade Idea: Buy Hindalco above 230
INDUSIND BANK
Over the past few weeks, we’ve seen some choppy action with IndusInd Bank (NS:INBK). There is some support near the 1960 region which, if broken could trigger prices as low as 1880. Also, IndusInd wasn’t able to clear new highs and sustain it. Whenever, this happens it could be a sign of a reversal.
- Trade Idea: Short IndusInd below 1960.
JP ASSOCIATES
Jaiprakash Associates (NS:JAIA) has been weak since quite some time now. While it is expensive to take a position in the futures due to the extremely high spread of 5 paise against the stock price of Rs. 13, taking a position in options may not be a bad idea. While the chart looks extremely bearish with continuous price rejection every time it tries to go higher, shorting in the money call options or at the money call options may yield a good result. The expiry only has a total of 6 trading sessions and the time decay along with the bearish chart will maximize gains.
- Trade Idea: Short ITM or ATM call options
Disclaimer: This in no way is investment advice. Please take trades as per your own understanding. Use your money wisely.