It is less than ten minutes to the close of the Indian stock market and further tomorrow is a trading holiday.
Grasim Industries Ltd (NSE symbol: GRASIM) offers a favourable position to buy in delivery.
In this article, we will go though the stocks and learn technical analysis as we understand this author’s take on technical analysis and his rationale to arrive at the forecast.
Its annotated daily price chart is attached below:GRASIM’s 50 day simple moving average (SMA) is above its 200 day SMA. Next, the 200 SMA is rising, and the 50 is rising strongly.
Next, at the time of writing today’s price action almost forms a White Marubozu. This candlestick pattern indicates strong buying pressure. Further, today’s candle is eliminating the previous two trading days’ red.
Thus GRASIM provides a good Trend Following trade i.e. a trade where we do not have a predefined target and if the stock moves favourably, we will give it room to form a base first before trailing our stop.
The stop will be one tick below the low of the recent trading activity’s low i.e. a stop order at 990.8
Disclaimer: All the content is for education purposes only.
Also read: Cipla Ltd, a NIFTY 50 stock, is a favourable buy in delivery for swing trading