Stocks for the week: September 2nd Week | 2024 | Vijay Thakkar
Education
Introduction
Hello friends! Today is a special day as it is Ganesh Chaturthi, and I would like to extend my warm wishes to each of you. May Ganpati Bapa bless you with joy, prosperity, and good health.
In yesterday's video, I introduced a new series aimed at fostering our joint learning experience. If you haven’t seen it yet, I encourage you to watch it after this video. I’ll include the link so you can easily find out what this series entails and how you can participate.
Another exciting announcement is that I will host a two-day webinar on October 20th and 21st, focusing on short-term trading strategies, which I specialize in. This approach will help you understand how to identify breakout trades and make informed decisions about stock selection. During the first day, we will cover critical topics such as trade planning, risk management, position sizing, tracking profits, and the psychology of trading. The second day will be dedicated to applying what we learned in real-time trading scenarios.
You can register for the webinar through the link provided in the description below. Now, let’s dive into today’s market analysis.
Last week, the market showed mixed behavior. It attempted to rally but was met with significant selling, leading to a negative close on Friday. Analyzing the Nifty’s monthly chart reveals a challenging scenario, where the high of the last month and this month serves as resistance.
In the weekly timeframe, a double-top pattern has formed, which is concerning. If the market opens negatively on Monday, be aware that the critical support level sits around 49,965. A breach of this support could lead to a noteworthy decline toward the trend line in the daily timeframe.
Looking at foreign institutional investors (FIIs) activity, they were net buyers for three days and sellers for two. The dollar index marginally decreased. The India VIX is trading around 101, and crude oil prices are on the decline, which is a positive signal. Among the sectors, small caps, FMCG, and small-cap indices performed well, while PSU banks saw significant sell-offs, particularly following a downgrade of SBI by a rating agency.
Now, let’s take a closer look at the potential stocks for this week.
1. Gujarat Fluoro Cam
I want to showcase Gujarat Fluoro Cam, which has been consolidating for around nine quarters. Its IPO debuted in 2019, and the stock has experienced a fourfold increase since then. Currently, it’s nearing an important resistance level. A breakout above 4,173 could lead to a target range of approximately 5,800 or more, depending on sector performance.
2. UTI Asset Management
The next stock to consider is UTI Asset Management, which recently experienced a strong breakout around 1,212. Its candle formation and volume during the breakout indicate strength. If you can enter between 1,200 and 1,250, potential gains could see the stock reaching around 1,800 based on range calculations.
Additionally, keep an eye on Laurus Lab and PPL Pharma, both of which show promising signs in their respective charts.
I emphasize that my aim is not to give stock recommendations but to provide insights into how to create informed trading strategies through price action and volume analysis.
If you’ve found our stocks insightful, please let us know in the comments. I also encourage you to join my webinar if you’re genuinely interested in deepening your understanding of trading strategies.
Lastly, I would like to wish everyone once more a Happy Ganesh Chaturthi and I hope you have a fulfilling week ahead!
Keywords
- Ganesh Chaturthi
- webinar
- short-term trading
- breakout
- stock selection
- support level
- Gujarat Fluoro Cam
- UTI Asset Management
- trading strategies
- market analysis
FAQ
What is Ganesh Chaturthi, and why is it celebrated?
Ganesh Chaturthi is a festival celebrating the birth of Lord Ganesha. It is marked by various rituals and festivities, signifying new beginnings and prosperity.
What can I learn from the webinar presented by Vijay Thakkar?
The webinar focuses on short-term trading strategies, including identifying breakout stocks, trade planning, risk management, and the psychology needed for trading.
How do I register for the webinar?
You can register for the webinar through the link provided in the video description or any related promotional materials.
What stocks are recommended for this week?
This week, Gujarat Fluoro Cam and UTI Asset Management are highlighted stocks, both of which are showing promising patterns for potential trading opportunities.
Why is analyzing higher time frames important in trading?
Analyzing higher time frames helps enhance accuracy in trading decisions and provides a broader understanding of market trends.