Buy NCDEX Feb Chana Future: Way2Wealth

Way2Wealth has come out with its special report on Chana. According to the research firm one can buy NCDEX Feb Chana Future for 1-2 months.

NCDEX Chana has been consolidating in a broader range since last september. This move has helped in forming a triangular formation which is nearing its meaningful conclusion. The counts on this formation suggest that the bottom is likely in place and it is all set to run on the way up for the breakout. As show in chart, wave E of the triangle is nearing an end. The support for wave E is pegged at 2977. Currently it's trading near the 40 WEMA which is quite a crucial support in the medium term. This triangular pattern is formed in wave 4 and wave 5 up and is expected to extend further which will eventually would breach the high of wave 3 i.e. 3700 levels.

Hence, there exists a high probability trade for the bulls as the stop is 2970 and target is above 3700, so the risk-reward ration comes to approximately 1:3

Strategy
• Buy 1 lot of NCDEX Feb Chana Futures
• CMP is around 3170
• In the event of adverse movement, exit on settlement below 2970
• Look for Initial exit around 3500-3700 and final exit around 3900
• Time frame: 1-2 Month
• Risk Reward Ratio: 1 :> 2 (20000 /40000-70000)
• Margin on Long side at present is around 26000

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment