Monday, 18 July 2016
Today's paper trade is on Maruti.
My view : Bearish to sideways.
Motive of trade : Stock has formed a weekly top and should be sideways to negative this week. 26th July is the quarterly result. So , Exit would be before 25th July.
Profit & loss Graph : Maximum profit will be 14500 @ 4300 strike and If stock remains above 4400 then we will loose 120 rupees + brokerage. Our stoploss will be 4200 . We can not hold position below 4200 as our loss will pick pace after that point.
Technical reason : Why I have bearish view on Maruti , because stock has formed a bearish candle at top of a channel . Also RSI also suggests over-bought on daily chart. See chart below