Greetings, fellow traders!
I hope you all crushed it in the market last week, just like we planned in my daily pre-market videos. This is as in my YouTube channel (@sandeepsinghahluwalia) I looked at the various indices having their expiry. Plus, I also analysed Bharti Airtel (NS:BRTI), HDFC Bank (NS:HDBK), and Reliance Industries (NS:RELI). I am glad to say that all are performing exactly as predicted. If you haven’t seen their analysis yet, then be sure to check them out. This is as the analysis is looking into the coming trading sessions, so it is still highly relevant.
Now, in today’s article, we will dissect two stocks and one index: Bharti Airtel, ITC, and the Nifty Midcap. Bharti Airtel will be covered in this article. However, ITC needed a more in-depth analysis; thus, it is better suited for a video format. This is as it requires a multi-timeframe analysis because of its chart structure. Therefore, a link to that YouTube video can be found below. The Nifty Midcap analysis is part of the usual pre-market videos I make daily. Hence, that too is in the video below.
Bharti Airtel - Technical Replay:
In the pre-market video on June 27th, I said that I expect the stock to form a temporary top in the coming days. This is as I expected a box range to form, as any rise would be met by strong resistance at 1520. Conversely, I had also said that we would not have a breakdown unless the support at 1445 gave way. And guess what? That is exactly how it played out! Airtel rose to 1513, a mere 7 rupees shy of my resistance level. After which, it succumbed to the resistance and fell back to my support at 1445. It even closed the week at 1446, which is a single rupee above my support level. That is what I call accuracy!
Bharti Airtel - Future Technical Plan:
So, how do we trade Bharti Airtel moving forward? The weekly chart has required us to make a slight tweak to the analysis. While all the support levels from the video remain the same, the key support to watch now is 1425. This is as in the daily timeframe, we see that volume buildup has primarily been centred around that point. This means that if we break 1425, then this could lead to a drop to 1390 and even further to the 1360–1370 support range.
My Personal Trading Strategy:
Now on Friday as we neared the 1520 resistance level, I entered CE option sells in which I have kept profit stops to secure gains. This aligns with what I had shared in the video, as I had said that any move to 1520 is a CE selling opportunity. Hence, I will keep that option selling position as it is.
However, on the option buying front. If we break 1425 and the volume buildup indicator is leaning towards the bears. Then this can be termed as an opportunity to buy PE spreads, as that will help us capitalise on a potential fall to 1390 and 1360. Finally, if Airtel reaches the 1360 support zone with a positive volume buildup, then I may consider a fresh short-term equity buy. But fear not, I’ll keep you updated via YouTube on whether that is a worthy trading opportunity.
In conclusion, Airtel is experiencing a temporary setback. While I am bearish on the stock in the short term, I remain bullish in the medium term. Therefore, due to that, I will use the derivative shorts as outlined above, followed by a potential equity buy later on. Lastly, do remember to check out the YouTube video shared below for an analysis of the Nifty Midcap and ITC. ITC’s analysis is one its equity holders should not miss.
Until next time, happy trading!
NB: Shared a link to the YouTube videos I discussed above. It lets you as a trader understand the analysis better. Plus each stock’s analysis is still relevant as I had covered how they should be traded for the days to come.
- Airtel and Reliance Industries Video link - https://youtu.be/mMjdMXGc2pA
- HDFC Bank Video Link - https://youtu.be/MVR8vdc0c3M
- ITC and Nifty Midcap Video Link - https://youtu.be/_sDacdLq9KY
Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgement before making investment decisions. The information provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.