Latest news with #MACD
CNBC
11 hours ago
- Automotive
- CNBC
Using options to buy the recent dip in this used car retail stock
Despite beating earnings estimates and maintaining solid profit margins, Carvana (CVNA) has been under pressure recently, losing more than 9% in the last eight sessions — all on tariff scare headlines. While tariffs are a legitimate concern for many companies, this kind of sharp drop is a textbook example of a knee-jerk reaction — and the market is full of them. As a mean reversion trader, the goal is to identify these overreactions and take the other side when the setup aligns. In this case, I'm using a couple of key technical indicators to spot whether CVNA is setting up for a bounce: RSI (relative strength index): RSI is a flexible indicator that helps identify both trend reversals and continuations. In this case, the signal is pretty clear — RSI reversed course on 6/26 and has been climbing since, suggesting that the recent bearish momentum may be fading. Support/resistance: Support and resistance levels are often simple to spot — and in the chart below, you'll see clear support around the $280 level. What's interesting is that CVNA is starting to bounce right off that zone, reinforcing its significance. MACD (5,13,5): I like to bring the MACD indicator into my analysis from time to time because it's a solid tool for spotting early entry signals. While the standard MACD can lag a bit, I often use a short-term version to catch momentum shifts sooner. A bullish crossover — where the MACD line crosses above the signal line — typically acts as an early signal to consider getting into a trade. In this case, MACD hasn't confirmed the setup just yet, but it's definitely worth keeping an eye on for potential confirmation. The trade setup: CVNA 305-310 bull call spread To take advantage of this mean reversion setup, I'm using a bull call spread — a strategy that allows me to risk as little as $250 per trade and scale up easily by adding more contracts. For instance, using 10 contracts means risking $2,500 for a shot at $2,500 in profit, as long as CVNA closes at or above $310 by expiration — just $3 above its current price. With the stock trading near $307, the trade is built by buying the $305 call and selling the $310 call. It's a simple, defined-risk structure that gives me upside exposure without tying up too much capital. I break down setups like this in detail in my book Mean Reversion Trading , and you can explore tons of real-world examples at . Here is my exact trade setup: Buy $305 call, July 18 expiry Sell $310 call, July 18 expiry Cost: $250 Potential Profit: $250 -Nishant Pant Founder: Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Time of India
13 hours ago
- Business
- Time of India
Stock Radar: This BSE Sensex stock from IT space is now looking attractive after breaking out from ascending triangle pattern; time to buy?
Investment Ideas Stock Radar: This BSE Sensex stock from IT space is now looking attractive after breaking out from ascending triangle pattern; time to buy? A breakout from an ascending triangle pattern occurs when the price closes above the horizontal resistance level with strong volume. Synopsis IT giant Infosys Ltd has broken out from an Ascending Triangle pattern, signalling potential upward movement. Experts suggest buying the stock with a target of Rs 1,770 in the next 7-8 weeks. Technical indicators like RSI and MACD support this bullish outlook, with analysts recommending a stop loss below Rs 1,560. Infosys Ltd, part of the Indian IT industry, broke out from an Ascending Triangle pattern on the daily charts, which has opened room for the stock to head traders can look to buy stock for a target of Rs 1,770 in the next 7-8 weeks, suggest stock has been under pressure after it hit a high above 2,000 levels back in December 2024. 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Business Standard
2 days ago
- Business
- Business Standard
Stocks to buy today: Avenue Supermarts, KPIT Tech on MOFSL's watch list
Stocks to Buy Today, June 19, 2025: Ruchit Jain of Motilal Oswal recommends buying shares of DMart, KPIT Technologies, and AU Small Finance Bank Stock recommendations by Motilal Oswal Financial, June 19: Buy DMart | CMP: ₹4,228 | Stop loss: ₹4,100 | Share price target: ₹4,450 Avenue Supermarts share price has given a breakout from 'Cup & Handle' pattern on the daily chart which is a positive sign. The breakout is supported by surge in volumes which has bullish implications. RSI indicator is rising, which confirms the upwards momentum. CATCH STOCK MARKET UPDATES LIVE Buy KPIT Tech | CMP: ₹1,421 | Stop loss: ₹1,380 | Share price target: ₹1,500 KPIT Tech share price has given a trend line breakout on daily scale. It is perfectly respecting the 20-DEMA and inching higher. The MACD indicator is rising, which confirms the positive momentum.
Mint
2 days ago
- Business
- Mint
Top three stocks to buy today, 19 June, as recommended by Ankush Bajaj
Indian benchmark indices remained range-bound as ongoing geopolitical tensions continued to weigh on sentiment. The Nifty 50 shed 40 points, or 0.14%, to close at 24,843, while the Sensex ended 105 points lower, or 0.13%, at 81,479. The decline was led by losses in tech, FMCG and media stocks. Top three stocks recommended for today by Ankush Baja Buy IndusInd Bank Ltd. (INDUSINDBK) — Current Price: ₹850.50 Also Read: Indian cement stocks become dearer than some global peers Buy: Avenue Supermarts Ltd. (DMART) — Current Price: ₹4,228 Buy: RBL Bank Ltd. (RBLBANK) — Current Price: ₹228.45 Also Read: These five fundamentally strong mid cap stocks offer a good balance of risk and reward Market Wrap On Wednesday, Jthe Indian stock market opened with a gap-down, reflecting global cues and early weakness. However, in the first half of the session, the market staged a strong reversal, recovering from lows and attempting to build positive momentum. But the second half saw a sharp V-shaped fall, wiping out earlier gains and pulling indices into the red by the close. The Nifty 50 ended the session 41.35 points lower, down 0.17%, to close at 24,812.05. The BSE Sensex also closed in the red, falling by 138.64 points or 0.17%, to settle at 81,657.51, to finish at 81,444.66. Despite a volatile session, the Bank Nifty closed slightly higher by 114.60 points or 0.21%, at 55,828.75. In sectoral action, Auto gained 0.37%, Banking closed up 0.17%, and the Consumption index rose by 0.16%, showing resilience in domestic-facing sectors. On the downside, PSE declined 0.75%, Metal slipped 0.72%, and Healthcare ended down 0.59%, indicating pressure in defensives and cyclicals. In stock-specific performance, IndusInd Bank led the gainers with a strong 5.11% rally, backed by robust institutional buying. Trent gained 1.93%, while Titan added 1.82%, reflecting strength in industrial and consumer-linked counters. Among the top losers, TCS fell 1.82%, likely influenced by weakness in global tech. Adani Ports dropped 1.41%, and Hindustan Unilever declined 1.34%, as profit-booking set in after recent advances Nifty Technical Analysis Daily & Hourly On 18 June 2025, the Nifty edged lower by 41.35 points (–0.17%), closing at 24,812.05. Despite the dip, the index remained between its key technical levels: the 20‑day SMA at 24,841, the 40‑day EMA at 24,560, and intraday closed below 20HMA (24868) and 40HEMA 24872. Looks short term weak structure and medium to long term range between 24550-25100. Momentum indicators showed mixed signals. The daily RSI held steady at 52, indicating neither overbought nor oversold conditions, while the hourly RSI slipped to 43, hinting at a slight loss of near-term momentum. The daily MACD remained positive (+124), reinforcing the medium-term bullish trend, but the hourly MACD was negative (–26), pointing toward possible short-term consolidation. In the derivatives market, call open interest (OI) stood at 18.77 crore compared to put OI at 11.79 crore, creating a PE–CE OI differential of –6.98 crore—a bearish indication. The overall OI trend also skewed negative. The highest call OI was concentrated at the 25,000 strike, with strong adding around the 24,800 level (+3.75 crore). On the put side, peak OI was seen at 24,000, while the largest put OI movement was a drop at 24,750 (–0.769 crore). The change in PE–CE OI of –4.51 crore further highlighted the bearish tilt among options traders. India VIX softened to 14.27, down 0.89%, reflecting subdued volatility expectations. This moderation in implied volatility came against a backdrop of light trading activity and an absence of major domestic triggers. Global factors also weighed on sentiment. Persistent geopolitical tensions, especially in the Middle East, and a cautious tone from the U.S. Federal Reserve limited upside momentum. Oil prices remained stable, offering neither headwinds nor tailwinds. Domestically, the RBI continued its variable-rate reverse repo operations following the June 6 rate decision, while the rupee weakened to approximately ₹86.47/$, adding mild pressure to equity valuations. In summary, 18 June saw a mild corrective session cushioned by key support levels and low volatility. Medium-term indicators remain neutral to slightly bullish, even as short-term tools signal possible consolidation. The bearish backdrop in derivatives and global headwinds suggest that dips toward the 24,840–24,870 zone may be bought, but a fall below 24,800 could open the door to further weakness. Traders should monitor RBI liquidity operations, oil price moves, and currency trends ahead of the June 19 session. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
2 days ago
- Business
- Mint
Best stock recommendations today: MarketSmith India's top picks for 19 June
On Wednesday, the Nifty 50 declined 0.17%, closing near 24,812 amid global uncertainty and profit booking. Investor sentiment remained cautious due to escalating geopolitical tensions in the Middle East and the anticipation of the US Federal Reserve's policy announcement. Selling pressure in heavyweight sectors such as Metals, FMCG, Energy, and Realty offset gains seen in auto and private banking stocks. Although intraday recovery was supported by domestic buying, the overall market tone remained subdued, keeping the index in negative territory. Two stock recommendations by MarketSmith India: Avenue Supermarts (current price: ₹4,229) Why it's recommended: Expansion and store growth, operational efficiency, e-commerce expansion Key metrics: P/E: 97.56 | 52-week high: ₹5,484.85 | Volume: ₹756.44 crore Technical analysis: Bounce back from its 50-DMA after a few days of consolidation Risk factors: Increased competition in the retail sector, vulnerability to supply chain disruptions, and regulatory risks Buy at: ₹4,229 Target price: ₹4,850 in three months Stop loss: ₹3,930 Also Read: Mint Impact: India plugs the loophole that allowed gold importers to evade duty BEML Ltd (current price: ₹1,907) Why it's recommended: Strategic position in defense and infrastructure, the government's infrastructure push Key metrics: P/E: 62.33 | 52-week high: ₹5,488 | Volume: ₹637.78 crore Technical analysis: Possible trendline breakout Risk factors: High dependency on government orders, working capital-intensive business Buy at: ₹4,464 Target price: ₹4,950 in three months Stop loss: ₹4,220 How Nifty 50 performed on 18 June On Wednesday, the Nifty50 opened with a gap-down and traded in a volatile manner throughout the session. While the index attempted to recover and reclaim bullish momentum, selling pressure at higher levels led to profit booking, resulting in the formation of a bearish candle with an upper wick on the daily chart. Barring the Nifty Auto and the Bank Nifty, all major sectoral and broader market indices ended on a flat to negative note. As a result, market breadth deteriorated further, with the advance-decline ratio tilting in favour of decliners at 1:2. From a technical standpoint, the Nifty 50 continues to exhibit volatile price action and has closed below its 21-DMA on the daily chart, indicating short-term weakness. The index has been consolidating within a well-defined range for the past five weeks, highlighting a lack of directional clarity. As of Wednesday, the daily relative strength index (RSI) remains flat, positioned around 51–52, while the MACD maintains a negative crossover. This technical setup reflects weakening momentum and suggests that cautious sentiment may prevail in the near term. Also Read: These five fundamentally strong mid cap stocks offer a good balance of risk and reward According to O'Neil's methodology of market direction, the Nifty reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of 11 June 2024. The index has been trading in a sideways range of 25,200-24,500 with a negative bias over the past six sessions. It has consistently failed to sustain above the psychological level of 25,000, reflecting a lack of bullish conviction. For a meaningful reversal to take hold, a decisive breakout above 25,000-25,200 is crucial, which could pave the way for an upward move toward 25,700-25,800. Conversely, continued failure to breach this range may lead to prolonged consolidation between 24,500 and 25,200, with strong support positioned at 24,500-24,400. How Nifty Bank performed On Wednesday, the Nifty Bank opened with a gap-down but witnessed a swift recovery in the initial hour of trade, eventually closing in positive territory at 55,828, 0.21% higher. The price action resulted in the formation of a small bullish candle on the daily chart. However, the price structure reflected a lower-high and lower-low, indicating lingering volatility and uncertainty. Meanwhile, the broader financial space remained subdued, with the FINNIFTY index declining 0.20% and forming a bearish candle, underscoring continued sectoral weakness. From a technical perspective, the Nifty Bank has attempted to reclaim its 21-DMA amid the ongoing volatility observed over the past week. The relative strength index (RSI) remains flat, currently hovering around 53–54, indicating lackluster momentum. Furthermore, the MACD continues to exhibit a negative crossover on the daily chart, reinforcing the prevailing subdued sentiment and suggesting that the index may remain in a consolidation phase over the near term. According to O'Neil's methodology of market direction, the Nifty Bank has recently transitioned from an 'Uptrend Under Pressure" to a bullish phase of a 'Confirmed Uptrend". Also Read: JM Financial stock rebounds 60% from its low. Will the clean-up rally sustain? The index closed near its 21-DMA, indicating a transition toward a sideways trend in the short- to medium-term outlook. Immediate support is positioned around 55,000, while resistance is seen at 56,000, with a subsequent hurdle near 57,000. Recent price behaviour suggests continued range-bound movement between 55,000 and 57,000 in the near term. A decisive breakout on either side of this range will be crucial in establishing the next directional move. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543) Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
