Top swing trading ideas you should not miss!

swing trading ideas
by 5paisa Research Team 29/09/2021

The deadly combination of price and volume percentage surge, which helps us to discover high probability swing-trading candidates.

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:     

  1. NHPC: NHPC hit a fresh 52-week high on Wednesday. The stock had witnessed a gap-up opening and thereafter, the stock almost filled its gap and traded in a range. However, in the last couple of trading hours, buying interest was witnessed in the stock, which helped the stock to hit a fresh 52-week high. Besides, the volume for the day was greater than the 10 and 30-days average volume and in addition to this, the stock’s daily range was greater than its 10-days average range, which resulted in meeting the norms of the swing trading system. In the near term, the stock has the potential to touch levels of Rs 32-34 and the support is seen around levels of Rs 28.   

  1. State Bank of India (SBIN): The Nifty PSU Bank Index was the top-performing sectoral indices on Wednesday and State Bank of India was one of the top-performing stocks from the PSU Bank stocks and also, it was the top contributor to the Nifty50 index. The stock bounced back from the upward rising trendline formed by joining major lows since August 28, 2021. The stock has also formed a Bullish Engulfing pattern. Furthermore, the stocks' daily range on Wednesday was greater than its 10-days average range. Additionally, the volume for the day was greater than its previous trading session and in fact volumes for the day were highest since September 17. Considering the stock has fulfilled the criteria of price and volume, one can look at this for swing trading. On the way up, the stock may touch levels of Rs 470 and on the downside, support is seen around Rs 448.    

  1. HEG: The stock has gained over 6% on Wednesday and with this, witnessed a breakout of descending channel. Interestingly, the breakout was seen with a wide-range bar as the daily range of the stock was double than its 10-day’s average. Furthermore, the breakout is backed by a surge in the volumes as volumes were not only higher than its previous trading session but also highest since August first half. Besides, it was higher than 10 and 30-days average volume. Considering the above factors, swing traders can keep this stock on their radar and should not miss this stock as it can touch levels of Rs 2400 in the near to medium term. On the downside, support is seen around Rs 2240 levels.

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