Strategy Overview:
Traders can consider going long on TVS Motor Company futures when there is a dip, taking advantage of the current support levels holding firm.
Technical Analysis:
Recent Rally: TVS Motor Company has been on an upward trend over the past few weeks.
Resistance Breakout: On Friday, the stock surpassed a key resistance level at ₹2,170. This breakout suggests a potential for further price appreciation.
Trade Setup:
1. Entry Point: Look to enter a long position on TVS futures on a dip, ideally around the previous resistance-turned-support level of ₹2,170.
2. Stop Loss: Place a stop loss slightly below the support level, around ₹2,140, to manage risk in case the support fails to hold.
3. Target Price: Set an initial target at ₹2,300, considering the momentum and the potential for further gains.
Rationale:
The breakout above ₹2,170 is a bullish signal, indicating that the stock has the strength to continue its upward move.
Entering on a dip allows for a better risk-reward ratio, as the support level at ₹2,170 is likely to act as a strong foundation for the stock.
Market Conditions:
Ensure to monitor overall market conditions and sentiment, as they can influence the performance of individual stocks.
Be aware of any upcoming news or earnings reports for TVS Motor Company that could impact its price.
Summary:
Action: Buy TVS Motor Company futures on a dip.
Entry: Around ₹2,170.
Stop Loss: ₹2,140.
Target: ₹2,300.
This strategy leverages the recent technical breakout and aims to capitalize on the continued bullish momentum in TVS Motor Company’s stock.
