F&O Stock Strategy: How to trade Samvardhana Motherson and IRCTC today
markets as Nifty formed a strong bearish engulfing candlestick on the daily charts. This correction is on the expected lines as Nifty was at significantly higher levels than its 50-day mean price. In addition, the uncertainty around the corporate earrings may also play a role in the future movement of the market.
However, these dips also offer a good opportunity and two stocks have formed a strong setup on the charts for further rally, giving a good risk-reward ratio.
Analyst: Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy
Samvardhana Motherson- Inverted Head and Shoulder Breakout
The price level of Rs 100 was a strong resistance and a psychological level for Motherson. The stock touched this level in August 2023 but could not sustain and corrected 13 percent from there.
However, in the last month, the stock has seen buying interest, taking the stock above Rs 100. The daily RSI of the stock is Rs 67 depicting momentum in the stock.
On the derivative front, buying is seen on the call side along with huge writing on the put side. The max pain is at Rs 103 indicating limited movement on the downside.
Thus, it is recommended to buy Motherson for a target price of Rs 116. The stop loss would be at Rs 99 on a closing basis.
IRCTC- Rounded Bottom Pattern Breakout
IRCTC, after making a high of 1280, corrected about 56 percent. The level of 900 was a strong resistance for the stock and the stock tried to break this level thrice but failed.
Last week, the level of 900 was breached with good volumes and since then the stock has been firmly holding above it. The daily RSI of the stock is 73 indicating strength on the upside.
Option chain analysis shows put writing at strike prices even above the at
