Stock: NTPC, Time frame: 1-2 weeks
Action: Short only if the prices cross below 195.5
CMP: 196.15 Target1: 190 stop loss: 203
Trading Rationale: The stock has broken down badly after being in a range for many months. The stock also had a unusual spike in volatility. This imply weakness in the stock. Since the market may rally due to the ambani brothers truce, it is prudent to short only if NTPC crosses 195.5 and trade with a tight stop loss.
Stock: Colgate, Time frame: 1-2 weeks
CMP: 703.8 Target1: 745 stop loss: 693
Trading Rationale: The near term correction seems to be over for this very strong FMCG player. Price and volume action suggests that a sharp rally is in the offing. Trade with a tight stop loss.