Momentum Trades — Trades 3 & 4 (IGL & INFY) — 8 March 2022
Here are my stock trades/set-up explanations & charts
Indraprastha Gas Limited (NSE: IGL)
Yesterday, we traded ONGC, and I explained in numerous blogs that the current global scenario is pushing Oil & Gas, Energy prices high, and thus, it is a favorable environment to trade stocks in these sectors.
Let’s look at the charts for Indraprastha Gas (IGL).
We checked for supports on a daily & weekly chart, and the stock rebounded a bit on the support line. There was accumulation and above-average volume, which indicated buying action.
Upon further analysis:
- The MACD had a golden cross or bullish cross over
- Stochastics had a bullish cross over and was in an oversold region
- RSI went up sharply, indicating the trend reversal.
Towards the end of the trading day, the volume has spurted so high indicating more buyers to close the trading day with a 9.5% gain.
We entered the trade assuming a risk to reward ratio of 2 for the trade, and the stop-loss set at about 4% up to the nearest next price resistance.
Infosys (NSE: INFY)
The tech sector in the US and India has taken a beating, and thus, most stocks have corrected well from their all-time high price.
We found that INFY was supported between price levels INR 1672~1695, and the immediate resistance is at about INR 1896, the stock getting consolidated at about INR 1720 range.