Trade Idea of The Day - Blue Star Ltd Target Rs. 6 - Religare Broking Ltd
Blue Star Ltd
SELL 25 AUG 1700 CALL BUY 25 AUG 1800 CALL Entry Range (Inflow) 24 – 28 Target 6 Stop Loss 36
Rationale
1. BLUESTARCO witnessed a bearish continuation pattern with sustained trading below the falling trendline and facing persistent selling pressure at higher levels. The stock has also slipped below its 20-WEMA and expected to retest its 100-WEMA in coming sessions.
2. On the technical front, the MACD histogram is on the verge of a fresh bearish crossover, with the gradually losing positive momentum, indicating weakening buying strength. A confirmed crossover would reinforce the prevailing negative trend and increase the probability of another leg lower.
3. The RSI is also hovering near the 40 mark, reflecting the absence of strong buying interest. Any failure to reclaim the 20- week EMA is likely to keep sentiment subdued, while repeated lower highs continue to strengthen the ongoing bearish structure for the near term.
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SEBI Registration number is INZ00017433
