Stocks to Watch on 27th Jan, 2021.

Stocks to Watch on 27th Jan, 2021.

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Last week I made a video on Pre Market Analysis and it actually did quite well. Almost every stock I’d analysed worked out (except TCS). But making a video is super time consuming and what sucks even more is not getting enough views. So I’ve decided to create a pictorial blog about the stocks I’ll be looking at on Wednesday, 27th Jan 2021.

Rules/ Things to Know-

  •  This is NOT a Buy/Sell recommendation/tip. Any stock I mention is purely for educational purposes only. Analyse thoroughly before trading.
  •  Take a trade in only 2-3 stocks a max. I’ll mention over a dozen stocks and it’s not possible to trade in all the stocks, so choose the 2 stocks wisely.
  •  Avoid trading in the first 5 minutes. Let the candle close. The first 5min candle is often misleading.
  •  Look at global scenarios. Based on the current market sentiments I’d prefer short selling over long trades but if the markets open positively and the upmove sustains, I’ll look for long opportunities.
  • All the ideas won’t work. If I mention 20 stocks, maybe 80% of them will follow my analysis and I may be wrong in a few stocks. Risk management is crucial here.

Nifty-

This is the hourly chart of Nifty50 and you can clearly see that the index is near a crucial support region which was previously a resistance. If that is broken a big down move can be expected. Based on what’s happening over the last couple of days, I won’t be surprised to see Nifty break the support.

However, on the shorter (5 min) Timeframe you can see the a retracement can occur. There’s a constant selling pressure and Nifty may retrace to 14,300 or 14,350. This is just about the price action analysis. I haven’t considered other data points like option chain, FII data, etc.

RBL Bank.

The Q3 results of RBL are anticipated and on the 1H TF you can see that the stock is near the support and has tried breaking the support a few times.

On a smaller TF the stock broke the support but with low volume and it might act as a resistance, so on Wednesday if RBL bank breaks the support with high volume and the selling pressure continues, I’ll look forward to shorting it.

Reliance Industries.

RIL tanked 5.5% today which is a really big fall. I’d look for shorting opportunity in RIL on Wednesday. The price action on Wednesday will help me find out the entry price, target and SL so I can’t say much as of now.

Bajaj Auto.

Even though I’m more inclined towards shorting on Wednesday, I’ll still consider some long trades since anything can happen. Bajaj Auto was on my radar today but since the sentiment was bearish I shorted some other stock.
The stock is in a serious rally recently and it’s trading in a channel like pattern. I wouldn’t short it, I’d consider long trade in Bajaj Auto, the trading range can give a breakout if the market opens in the green on Wednesday, but even if the market is flat, the channel could develop into a trading range. So not much to short.

DLF.

The hourly chart of DLF shows a sort of a triangle pattern and a breakdown with low volume.

But, if we zoom in onto the 5min TF, the triangle looks much more reliable and the breakdown looks good enough. If the stock goes below 266 rs, I’ll consider shorting it. I wouldn’t take a long trade in DLF though.

Tata Motors.

I’d shorted Tata Motors today, initially it gave a 2.5:1 profit but due to the crazy volatility before Budget 2021, in a split second the stock reversed leaving me with a small profit. Tata Motors is an interesting stock,
There was a gap in the stock on 21st Jan and it appears to be filled. If the stock breaks the support, I’ll short it provided there’s some sort of price action pattern with high volume. I won’t consider a long trade as of now.

Infosys.

On the hourly chart, there’s the triangle being formed and a small breakdown. The volume isn’t on the higher end though.

but the shorter TF looks interesting. The breakdown as huge, and was supported by heavy volume but the stock reversed pretty quickly. If this is a retest and the stock goes down further, I’d short it with a small position.
Once it breaks the previous days low, I’ll go in with a larger quantity. This might be an interesting play and I’d love to wait and watch how it turns out.

Zee Ent.

A channel is being formed in Zee and there’s a small resistance in the stock. If the news is positive and the global markets, Nifty50 and Nifty SGX seem bullish I can consider a long trade in ZEE Ent once it breaks out with high volume.

Hindaco.

This is more of a swing trading idea. The stock is in a downtrend and it can retest upto 250-252 level and continue the downwards movement. If that happens, you can short it for a couple of days.

Wipro.

Wipro broke out of its channel and gave a small profitable upmove but it’s still going down. The stock went up at the support and if the support breaks with high volume and if Nifty is down or Nifty IT (sector) is negative, It can be a shorting opportunity.

Another stock with a triangle pattern that broke down with high volume and if the previous day’s low is broken after restest at the triangle or the 200EMA, you can short it as a swing trade. It seems like a high probability trade.

there is some demand below the support so this can be a long opportunity as well provided the volume is very high and Nifty isn’t too negative. I’d be cautious taking a long trade in this.

Sun Pharma.

The stock is trading in a channel on the 1H chart and there’s a double top pattern near the resistance and usually double tops aren’t very reliable but If they’re formed near a resistance the probability of success increases.
If the stock breaks down below the 200EMA I can consider shorting it.

Honourable Mention- TVS Motors.

 

The stocks I’ve mentioned, it’s not a buy/sell recommendation and I don’t encourage you to trade blindly because I said so. I’m more inclined towards shorting opportunities but I still have 3-5 stocks for long trades just in case.

This isn’t the complete list. I have about 10 more stocks I’m tracking but the blog would be too long if I mentioned them.
This is not the complete analysis. This is just the market structure. This alone isn’t enough. Based on the volume and price action patterns I see on 5M chart on Wednesday, I’ll take a trade. I haven’t mentioned the target and SL yet since the market is too volatile and it would be better to decide them when the market opens.

 

https://youtu.be/FpOP06-1Jjg

For a better understanding you can watch my youtube video on the same. It was shot last week. It’s a long video but it’ll teach you what most YouTube videos don’t. watch it if you’re interested.

-Vikrant C.

 

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