Swing trade ideas: Indigo, ICICI Pru, Shree Cement, FACT top picks for this week

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At 13:23 hrs IST, the Sensex was up 39.30 points or 0.05 percent at 76,732.66, and the Nifty was up 44.30 points or 0.19 percent at 23,334.50.

Indian benchmark indices continue with positive momentum this week with Nifty and Sensex trading near all time highs on Monday, June 10. Nifty is trading well above its important support level of Rs 23,200.

“The overall technical structure shows good momentum and positive market sentiment. We should eventually head towards the Rs 23,500 and Rs 23,700 levels if this bullish momentum continues. However, a break below Rs 23,200 could bring in negative market sentiment and push the downside move towards Rs 23,000 and Rs 22,800,” said Riyank Arora, a Technical Analyst at Mehta Equities.

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As we begin this week, Arora shares some top swing trade ideas to position for the week ahead:

ICICI Prudential Life Insurance Ltd: Buy CMP: Rs 580.00 | SL: Rs 560.00 | Target: Rs 625.00

The stock has given a strong breakout from its downward parallel channel formation. With the RSI (14) on daily charts near the 54 mark and showing a minor uptick from lower levels, the stock seems poised for a good upside move towards potential targets of Rs 625.00 and above. However, a strict stop loss should be kept at Rs 560.00 to manage risk well.

Shree Cement Ltd | Buy | CMP: Rs 27,299 | SL: Rs 26,600 | Target: Rs 28,200

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Arora notes that the stock has given a strong breakout from its wedge formation on the technical charts on a daily time frame. “With the stock managing to cross its hurdle of Rs 26,800 and RSI (14) crossing the 65 mark, the overall momentum looks strong and the stock seems poised for an upside move towards Rs 28,200 and above. However, a strict stop loss should be kept at the Rs 26,600 mark to manage risk well,” he added.

FACT (Fertilisers And Chemicals Travancore Ltd.) | Buy | CMP: Rs 765.00 | SL: Rs 725.00 | Target: Rs 850.00

The stock has given a good breakout above its downtrend line on its daily time frame charts. Further, Arora highlights that the stock has also managed to decisively cross above the swing high resistance mark of Rs 747.80, and volumes in Monday’s session were nearly 10 times its 30-day average traded volume. “A strict stop loss should be kept near Rs 725.00 for this trade, and we can expect upside targets of Rs 850.00 and above,” he advises.

INDIGO (InterGlobe Aviation Ltd.) | Buy | CMP: Rs 4,599.00 | SL: Rs 4,490.00 | Target: Rs 5,000.00

The stock has given a strong breakout above its all-time high mark of Rs 4,529.00 and is managing to hold well above the same. “With the RSI (14) crossing the 65 mark, the overall momentum looks strong and the stock should eventually head towards potential targets of Rs 5,000.00 and above. However, a strict stop loss should be kept at the Rs 4,490.00 mark to manage risk well,” stated Arora.

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