Trade Idea of The Day - Trent Ltd Target Rs. 80 - Religare Broking Ltd
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Trent Limited
BUY 25 AUG 2800 PUT SELL 25 AUG 2700 PUT Entry Range 30 – 34 Target 80 Stop Loss 16
Rationale
1. TRENT continues to exhibit a bearish continuation pattern as the prices traded below its 50-DEMA, while repeated failure to sustain above this level reflects persistent selling pressure. The 20-DEMA acted as a overhead resistance zone, reinforcing the sustained selling pressure for the near term.
2. Momentum indicators remain subdued, with the RSI hovering near the 40 mark, indicating the absence of buying strength. Meanwhile, the MACD histogram witnessed a fresh bearish crossover, suggesting bearish momentum ahead.
3. The recent consolidation in range of 2800 to 2900 appears to be a pause within the prevailing downtrend rather than a reversal. Any pullback towards 2930-2950 is likely to attract fresh selling interest unless accompanied by strong volume.
4. Meanwhile on the downside, strong support is placed near 2700 zone. Traders should maintain a sell-on-rise approach, with buying in the ATM PE with selling in the PE of support zone.
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SEBI Registration number is INZ00017433
