Trade Idea of The Day - Adani Enterprises Limited Target Rs. 35 - Religare Broking Ltd
Adani Enterprises Limited BUY 24 FEB 2200 PE SELL 24 FEB 2140 PE Entry Range 19 - 21 Target Range 35 Stop Loss 14
Rationale
* On the daily chart ADANIENT remains locked under a prominent falling trendline that has acted as a rigid ceiling for months. Recent price action shows a failure to break above this resistance, suggesting sellers are still in control.
* The prices are trading below its long term moving average of 100-DEMA, indicating that the momentum is skewed to the downside, with the EMA acting as a dynamic barrier to any recovery attempts.
* Despite a minor relief rally, the candles are turning small and indecisive right at the trendline confluence. This lack of "buying conviction" precedes a reversal back toward previous lows.
* On the broader timeframe the MACD histogram traded in the bearish trajectory and the RSI is flattening out near the 50 mark, suggesting the upward momentum is already exhausting before reaching overbought territory.
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