Top swing trading ideas you should not miss!

by 5paisa Research Team 27/09/2021

Price and volume are two of the most prominent inputs used by traders across the world while swing trading. When used in isolation, they reveal very little but when used in conjunction, they help us to sort the wheat from the chaff. So, this swing trading system is based on the deadly combination of price and volume percentage surge, which helps us to discover high probability swing-trading candidates.   
 
So, here is the list of stocks that fulfil the criteria of volume and price surge and as a result, they flash in our swing-trading system:  


HDFC Bank: Banking heavyweight HDFC Bank was the top-performing stock from the banking index and it was also the top contributor in the Nifty index on Friday. The stock opened with a gap-up and it traded in a range for the first couple of hours. But it picked up pace in the second half of the trading session along with a surge in volume, which indicates the enthusiasm of the buyers. Moreover, the volume for the day was greater than the 10 and 30-days average volume, which resulted in meeting the norms of the swing trading system. The stock has the potential to touch an all-time high of Rs 1641 in the near term with immediate support placed at Rs 1572. 


JB Chemical & Pharmaceuticals: The stock of JB Chemical & Pharmaceuticals has jumped nearly 5% on Friday and with this, the stock recorded its highest single-day gain in the near term. Moreover, the stocks' daily range on Friday was twice its 10-days average range. Additionally, the stock witnessed volume over 5-lakh shares which is greater than its 10 and 30-days average volume, so it meets the rules of our defined swing trading system. The stock has support placed around Rs 1740, while on the upside the resistance is seen around the zone of Rs 1930-1937.  


Gujarat Alkalies & Chemicals: The stock of Gujarat Alkalies & Chemicals jumped more than 10% on Friday. The stock witnessed a perfect trend day as there was expansion in the daily trading range. Testimony of this is that the stock daily range was greater than its 10-days average range. Furthermore, the stock’s opening and closing are near opposite extremes. The second parameter which we analyze for swing trading is volume. The volume witnessed on Friday in the stock was greater than its 10 and 30-days average volume. Hence, swing traders can keep this stock on their radar and should not miss this stock as the stock has the potential to touch levels of Rs 648-660 in the near to medium term. 


 

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