This week the Indian financial market has been teetering on the edge of the seat due to the rupee sliding continuously even after the intervention of the central bank. Moreover, this week the bulls were given a surprise inspection by the market bears which left traders running for the hills. However, yesterday the market got a reprieve as the bulls finally came out of hiding which resulted in the advance-decline ratio being in the favour of the gainers, as the National Stock Exchange had 1,019 stocks rise, 715 decline and 337 remain unchanged.
Due to the correction occurring, there is now an innumerable amount of opportunities in stocks. But as we have limited space and time, Thus, we shall only look at four such stocks in which there exists short and long opportunities which are profitable from a risk reward point of view.
Reliance Industries (NS:RELI):
The first stock I shall be looking at is Reliance Industries. This year alone the equity has managed to rise from Rs 870 to Rs 1,329 which has let long term investors earn a decent level of return. But now the big question that arises is whether the bullish rally can linger on as the stock has already risen significantly this year or will the bears come in and give the bulls a commendable payback. Moreover, the current chart scenario of the equity also confirms this conundrum as it is currently between a key support and resistance zone.
Godrej Industries (NS:GODI):
The story in Godrej Industries is different to the one seen in Reliance as this equity has been trading in two wide box range pattern for the prior one year. Moreover, it has done that with identical up and down swings thus giving traders who are swift on entry and exit rather quick profits. However, now the equity has entered a phase of confusion as it managed to break below a key support level and that too with a three black crows pattern. Thus, the big question now is whether we shall have a bearish continuation due to the breakout below support or we shall have a bullish comeback due to the bullish candle seen. Lastly, do analyse at the graph above.
The big picture:
Overall, I am confident that the above four stocks have a high probability of charting a lucrative path in the upcoming days. Lastly, do watch the YouTube video below so as to further understand the analysis of the above-mentioned equities plus to know about the bonus two equities included in the video. Moreover, any readers who want to enhance their knowledge and reader experience on the above stocks then you may contact us. Lastly, do analyse at the graphs above.
Good luck trading.
Sandeep Singh Ahluwalia
MCSI (UK), MSc Fin (UK), MCom (India), BSc Econ (UK)