Breakout Alert! Trading Strategies for TCS, Adani Enterprises and Adani Green

Greetings, fellow market traders!

In today’s article, I cover three stocks and one index. The article covers Tata Consultancy Services (NS:TCS). While, the YouTube video shared below analyses Adani Green, Adani Enterprises (NS:ADEL), and the Nifty Midcap. I covered these stocks via a video, as the Adani Group became a media darling the prior week. Thus, the chart analysis of their stocks requires a slightly different approach. Additionally, I looked at Midcap Nifty because of its expiry. This is as I release a daily video analysing the index expiring that day. In these videos, I share some profitable expiry strategies for both option buyers and sellers.

Now, three weeks ago, I shared my analysis on TCS via my YouTube channel, and that has proven to be accurate. This is as I said that I anticipated a period of price consolidation for the stock. As many of you observed, this prediction materialised as the stock adhered well to the outlined levels.

Now moving forward, the key question becomes, What’s next? The chart of the equity indicates that the stock is at a pivotal point. This is as if TCS were to breach the ₹4,300 resistance level, then we could get significant price movement. This is as a break of₹4,300 might propel the stock towards₹4,420 or even₹4,540. Conversely, if this resistance level holds, then we can expect TCS to be range-bound between ₹3,950 and ₹4,300.

How will I trade it? My strategy will be based on the stock’s price action and the volume buildup indicator. Now a break above ₹4,300 would warrant a long position. However, the key question is whether to trade via a direct equity purchase or option selling. This is as an option sell will be advantageous in stagnation as it will offer an attractive return. However, an equity buy will be less risky and can give a higher return over a similar period. So I will let the volume dictate my choice between the two. If I see a bullish surge in the volume buildup in the coming week, then I will shift towards an equity purchase. However, if the volume buildup shows an equilibrium on Monday, then I will enter via option sells.

In conclusion, TCS has followed my script to the tee. However, the current outlook now suggests a potential breakout. So now it is a wait-and-watch while keeping an eye on the volume buildup.

Lastly, do not forget to check out my YouTube video for a detailed analysis of Adani Green, Adani Enterprises, and the Nifty Midcap. This is because both stocks present lucrative opportunities for traders and investors. Additionally, for those trading the Midcap Nifty expiry, my video offers guidance on crafting a winning expiry strategy.

Until next time, happy trading!

NB: The links to the YouTube videos I discussed above are shared below. It lets you as a trader understand the analysis better. Plus, each stock’s analysis is still relevant, as I covered how they should be traded for the days to come.

Youtube video link to Adani Shares - https://youtu.be/tNkbIe86V4I.