Greetings, fellow investors!
Before we start, I wanted to remind readers to check out my last two articles and their respective YouTube videos. This is as stocks covered, such as Escorts and Aditya Birla Fashion (NS:ADIA), have performed as expected and given the viewers of that video a quick return of 16-18%. Moreover, stocks such as BPCL are halfway into their move and still can be capitalised upon.
Now coming to the stocks of today. I have chosen to analyse Jubilant FoodWorks in the article while also looking at it in the YouTube video. However, I have analysed Apollo Hospitals (NS:APLH) and Bajaj Finance (NS:BJFN) only in the YouTube video shared below. So do watch it to understand how to trade the wild swings of Bajaj Finance and make a decent return while doing so. Plus, why equity investors should be very careful with Apollo Hospitals.
Now let’s shift our focus to Jubilant FoodWorks (NS:JUBI). The past few months haven’t been kind to the equity. I say this as the stock price has fallen by a whopping 28% from a high of ₹587 to a low of ₹420. However, there is now a new reason for optimism. This is because since March 14th, the stock has been under consolidation, and that may end in favour of the bulls. I say this due to numerous positive indications. The first positive indication is a high-volume bullish bar that formed on April 30th. This suggests strong buying pressure has come in. Hence, as long as we don’t break below this bar, the bullish story will stay intact. The second positive factor is the trend-catcher indicator. This is as the indicator is attempting to crossover, and if this occurs, then the bulls will get a strong boost. Finally, the third positive is the volume buildup. This is because, in the past three months, most of the volume buildup favoured the bears. However, last week brought a change as the volume build-up was in favour of the bulls each day. If this trend continues then the stock will rally to the resistance levels shared below.
So, how should I approach trading Jubilant FoodWorks? If the stock were to break above the resistance at ₹468, then I would enter it with half my usual position size. I would not make a full-sized entry due to two factors. The first is that there is a quant resistance zone at ₹480, and this could cause the stock to retest the support at ₹454. So, if this were to occur, then I would prefer to enter the other half of my position at ₹454. This is as I would get the stock at a bargain. The second factor is that if the stock does not retrace to ₹454, then it may hover in a tight box range before breaking ₹480. Hence, to be sure, I would only add to my position upon the stock breaking ₹480. This way my funds are secure owing to the staggered entry. Lastly, if the stock can clear the resistance at ₹480, then we will have a quick rise to the resistance at ₹510.
In conclusion, Jubilant FoodWorks appears to be at a critical juncture. A break above ₹468 could lead to ₹480 and ₹510. However, a stall at ₹468 could also drop us to the supports at ₹448 and ₹440. Hence, clearing the resistance at ₹468 is of utmost importance. Finally, do not forget to watch the YouTube video shared below. This is as we have explored strategies for trading Jubilant FoodWorks, Apollo Hospitals and Bajaj Finance. Plus, understanding the last two equities’ price action could save you from losses. This is because both are currently navigating treacherous paths.
Happy trading!
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.