F&O Stock Strategy: How to trade Aditya Birla Fashion and Retail, JSW Steel
Nifty and Sensex were trading marginally higher on Wednesday driven by contributions from Reliance, Infosys, ITC and Hindustan Unilever.
Nifty has rallied nearly 5% in the current calendar year while Sensex has jumped approximately 4% in the same period.
In terms of FII positioning, the FII long-short ratio in index futures has dipped from 53% to 28% in May so far as they have been net sellers in the cash segment to the tune of Rs 35,530 crore. However, they have been net buyers in the stock futures segment and the FII cash selling has been completely absorbed by the DII buying to the tune of Rs 34,000 crore.
Analyst Sudeep Shah, Vice President and Head of Technical & Derivatives Research, SBI Securities suggests how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:
ABFRL’s Trendline Breakout Sparks Optimism
The stock of Aditya Birla Fashion and Retail has given a horizontal trendline breakout on Tuesday. This breakout was accompanied by a noteworthy surge in trading volume, reaching nearly three times the 50-day average volume. Tuesday’s total volume of nearly 197 lahks far exceeded the last 50-day average volume of 75 lahks. Furthermore, the stock exhibited substantial bullish candle on the breakout day, further reinforcing the strength of this upward movement.
Currently, the stock is trading above its short and long-term moving averages. These averages are in a rising trajectory and the desired sequence, suggesting the trend is strong.
