Grasim Inds – Technical Analysis

Grasim Inds as on 07 May'13  – 3018.35

Grasim Inds as on 07 May’13 – 3018.35

In our last article on Grasim Inds, on 24 Dec’12, I have asked my reader to Sell on Rise when it was trading at 3171. After which Grasim made a low of 2666.75 and took a rebound in last few days.

Technically, Grasim Inds was trading in a falling channel from mid Oct’12 and recently prices broke out from this channel. Prices are trading below its its 200-day EMA which is placed near 3065. In last session prices moved and settled above its 38.2% Fibonacci Retracement of last down leg. Momentum oscillator RSI (14) is giving positive indication.

Trading Strategy for Grasim Inds

I think its time to take some risk in Grasim Inds. Some risk is obviously involved in taking long position, because near 3065 prices have strong resistance from its 200-day EMA.

Traders can initiate long position on any dip near 2980, with a stop loss below 2900. If, prices manage to break above 3065 than it can move higher upto 3200+ levels.

Alternatively, traders can Buy Call Option of Grasim Inds.

Grasim Inds Option Strategy
Strike Price Options Recomm Lot Size Stop Loss
3100 CE 45 125 25

Way to profits welcome your view and suggestions.

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