Market Overview:
Nifty 500 index tested last week low and then got a super bounce on Thursday expiry day testing the high of previous week. Market breadth improved a little with 42% stocks trading above 20 SMA by 3rd Jan close while 50% close above their 50 SMA. Month of January 2025 has started on a positive note with 350 stocks closing in green while 150 closed in red.
For dec month 3.21 lakh cars were sold recording jump of 11% on Dec ‘2023. India Manufacturing PMI dropped to 56.4 in December 2024, down from 56.5 in November with slow growth. FIIs continues to be net seller for the week. In first 3 days of 2025 trading they have sold Rs.4.3k crore worth of shares in the cash market. On derivatives side FIIs increased their short position and now have 2.29 lakh contracts on short side. Looking at these numbers it will be difficult for the market to create any short term rally.
In upcoming week major events include CPI data for Europe and US along with India IIP numbers by end of the week.
1st Technical Setup: Potential VCP Breakout
Stock Name – APL Apollo. LTP 1616
When should I enter?
– Buy if stock trades above 1670
When should I exit?
Target is 1800+ which was previous 52 week high
SL is 1500 which is current weekly candle low
What is Reward to Risk Ratio?
– Aiming for 10% gains while Risking 10%. So Reward to Risk is 1:1
2nd Technical Set up: Potential Trend Surge breakout
Stock name is HPL Electric. LTP 588
When should I enter?
– Buy if stock trades above 600
When should I exit?
Target is 680 which is equal to the last swing high
SL is 570 which is low of the Maribozzu Candle on Friday
What is Reward to Risk Ratio?
– Aiming for 14% gains while Risking 8%. So Reward to Risk is 2:1
Please check the attached pdf report for more details.
Trading Pulse 102