Trading Strategies for Zomato, Paytm, Adani Green.
Indian benchmark indices managed to settle with mild cuts on Monday, following a volatile trading session. NSE Nifty 50 dropped 72.95 points, or 0.29 percent to close at 24,781.10. On the other hand, the BSE Sensex shed 73.48 points or 0.09 percent.
Zomato:- Over the past 16-18 months, Zomato has surged by an impressive 570 percent after hitting a low of Rs 44.35 in January 2023 and now trading around the Rs 265 level. On the daily chart, a head and shoulders pattern has emerged, with the price action breaking below. This type of pattern typically indicates a reversal signal, suggesting the potential for a price deck after reaching market peak. Given the signals, it is recommended to book profits on any upward bounce towards the ₹275- 280 range.
Adani Green:- In recent months, Adani Green has faced resistance in the ₹2,100-₹2,200 range. This indicates that the stock has struggled to break through this price level, which may be a key area of selling pressure or market skepticism. The stock has the potential to decline further, possibly dropping to ₹1600 in coming weeks. Looking at the current technical setup, it is advised to avoid initiating fresh long positions at the time.
Paytm:- In the past five months, Paytm has experienced a strong rally, surging by 150% after dropping to a low of ₹310 in May. This significant increase indicates rising investors confidence and favourable market dynamics surrounding Paytm and is currently trading near the Rs 725 level. On the daily chart, both the Relative Strength Index (RSI) and Average Directional Index (ADX) have shown bearish divergence. Paytm is facing key resistance levels at ₹775 and ₹800, which could act as hurdles to the ongoing rally.
