Trade Idea of The Day - Coal India Ltd Target Rs.15 - Religare Broking Ltd
Coal India Ltd
BUY 27 OCT 430 CALL SELL 27 OCT 450 CALL Entry Range 5 – 6 Target 15 Stop Loss 2
Rationale
• On the daily chart, COALINDIA established a firm structural bottom around the 420-425 zone, cleanly bouncing off its 50- WEMA. This level coincides with prior swing accumulation zones, confirming resilient buying interest.
• Recently, the stock price has successfully reclaimed both its 20-WEMA and the 50-WEMA. Moving back above these shortto-medium-term moving averages signals an immediate bullish pivotal structure.
• The Momentum Indicator, RSI hovering above the 50 mark, crossing back above the neutral zone, indicates strengthening bullish momentum. Concurrently, the MACD histogram shows shrinking negative bars, signalling momentum indicator relief and diminishing selling pressure.
• Sustained trading above the immediate support of the 420 zone confirms a primary trend reversal. Initial upside objectives target 450-460, with a momentum breakout opening room toward the previous peak resistance zone.
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