Trade Details
- Stock: IRB Infrastructure Developers
- Date of Trade: 17.01.2025 (Friday)
- Action: Buy
- Quantity: 10,250 shares
- Buy Price: ₹53.50
- Stop Loss: ₹51
- Target Price: ₹54.75
- Exit Price: ₹54.75
- Trade Type: Intraday
- Profit Realized: ₹12,812.50
- Risk-Reward Ratio: 1:2.5
Rationale Behind the Entry
1. Sectoral Momentum
The infrastructure sector showed strength during the session, driven by positive cues in the Nifty Infra index. With increased focus on government infrastructure projects, the entire sector displayed bullish momentum, positioning IRB as a prime candidate for gains.
2. Technical Breakout
IRB broke out above a key resistance level of ₹53.50, supported by strong trading volumes. The breakout indicated bullish sentiment, making this level an ideal entry point.
3. Volume Spike
There was a noticeable surge in trading volumes during the early hours of the session, signaling strong buying interest. This volume-backed price movement reinforced confidence in the trade.
4. Favorable Risk-Reward Setup
The trade was structured with a clearly defined stop loss at ₹51, limiting potential downside risk. With a target at ₹54.75, the trade offered a risk-reward ratio of 1:2.5, making it a high-quality opportunity.
5. Peer Comparison
Compared to its peers in the infrastructure sector, IRB showed stronger intraday performance and higher relative strength, making it the top choice for the day.
6. Market Sentiment
Optimism around infrastructure development, combined with investor confidence in budgetary announcements, created a supportive environment for IRB’s price movement.
Outcome
The trade resulted in a profit of ₹12,812.50, capturing the upward momentum effectively. Exiting near the session’s high ensured maximum gains were realized while adhering to a disciplined trading strategy. This calculated entry, based on technical, fundamental, and market factors, highlights the importance of aligning multiple signals for a successful trade.
