F&O stock strategy: How to trade in Bajaj Finance, IDFC First Bank?
Want to take exposure to a sector which grows much faster than GDP
Commenting on the day's set-up, Anand James, Chief Market Strategist at Geojit Financial Services said that a swing high is favoured given Nifty is at the lower extremity of the bollinger band. However, the path is littered with numerous obstacles and requires a close above 21,490 for confirmation or else one can expect the downside up to 20,900 to resume, James said. He sees 21,315 and 21,430 as obstacles on the way up.
We spoke to analysts on how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:
Analyst: Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research, SBI Securities told this to ETMarkets
Bajaj Finance slips below 200-day EMA level
The stock of Bajaj Finance gave an upward-sloping trendline breakdown on Tuesday. The trendline was formed by connecting swing lows from November 2023. This breakdown was accompanied by substantial trading volume, emphasizing the bearish sentiment. The stock also formed a notable bearish candle on the breakdown day, reinforcing the negative outlook.
Further, along with this breakdown, the stock has tumbled below its 200-day EMA level, which is a bearish sign. This breakdown serves as a bearish signal, reflecting a potential shift in the stock's long-term trend. Further, the 20 and 50-day EMA has started edging lower. While the rising slope of the 100 and 200-day EMA has slowed down significantly, which is a bearish sign. The momentum indicators and oscillators are also supporting the overall bearish chart structure. The daily RSI has slipped below 40 mark for the first time after November 2023. The daily MACD histogram is
