[Premium] Market-Neutral Trade Opportunities

JC Parets
May 21, 2020

Yesterday in our Monthly Conference Call we discussed relative strength in detail and how we're using it to identify opportunities in the current market environment.

Today we wrote a detailed post expanding on our thought process, which we'd highly encourage you to read before continuing with this post.

In this post, we're going to outline several market-neutral trades we think are actionable today.

Here's Tata Consultancy vs the Nifty 50. As long as prices are above 0.205, we can be long this ratio with a long-term upside objective near 0.30.

Click on chart to enlarge view.

Shree Cements is breaking out of a big base relative to the Nifty 50. Any weakness towards 2.00 can be bought with a target near 2.43.

The Elgi Equipments Ltd. vs Nifty 50 ratio can be owned as long as prices are above 0.0126, with an upside objective near 0.0212.

Amber Enterprises India vs Nifty 50 ratio is a long if prices are above 0.117, with a long-term target near 0.2105.

Mindtree Ltd. is nearing the top of a 4.5-year base relative to the Nifty 50. If this ratio is above 0.1067 then we can be long with a target near 0.1457.

The Sterlite Technologies vs Nifty 50 ratio is breaking its downtrend line and nearing its 2020 highs. As long as prices are above 0.0090 then this bearish to bullish trend reversal is intact and we can be long with a target of 0.024.

If you're looking for market-neutral "pairs trades", then these are some of the most attractive reward/risk setups out there.

If you need guidance on how to execute these trades in the market, read our full explainer post here.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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