Pidilite (A consolidation gearing up for a breach ?)
Pidilite has formed a beautiful triangle since June and looks like it might just be on the verge of a breakout, however a reversal within the zone isn't ruled out either. The stock has good supports in EMA's on the downside (9EMA (Green), 50EMA(Yellow), 200EMA(Red)), however a volatile and a bearish sentimental day can take them all out. On the bullish side any breach of the triangle on the upside will give a good momentum until 1570-1600 levels, a bearish momentum (a breach of the EMA's and the triangle line on the short side) should put further pressure on the stock and the stock might end up testing 1350 levels.
However we need to keep in mind that it is results season now and fundamentals have kinda bigger role to play so expect some weird momentums to kick and negate your trade altogether. Try and avoid over night positions and if you do make sure to hedge them.
Sentiments are turning negative again with the world recording a record number of cases today and Europe seeing a second wave of the virus any major lockdown might kick the fear in and multiple things will kick in together causing the markets to spiral down. And then the invested would ask why is the market going down without much of a reason similar to when the bears/un invested people asked between April to Present why is the market going high without much reason.
Trade with Caution, possibly some Very Scary times ahead.
However we need to keep in mind that it is results season now and fundamentals have kinda bigger role to play so expect some weird momentums to kick and negate your trade altogether. Try and avoid over night positions and if you do make sure to hedge them.
Sentiments are turning negative again with the world recording a record number of cases today and Europe seeing a second wave of the virus any major lockdown might kick the fear in and multiple things will kick in together causing the markets to spiral down. And then the invested would ask why is the market going down without much of a reason similar to when the bears/un invested people asked between April to Present why is the market going high without much reason.
Trade with Caution, possibly some Very Scary times ahead.