Top equity indices consolidated in thin trading and managed to eke out gains during the truncated week gone by. The BSE Sensex rose 146 points, or 0.42 per cent, for the week to 35,158, while NSE’s Nifty added 32.20 points, or 0.31 per cent, to end the week at 10,585.
Nifty’s next critical resistance appears to be placed around 10,710, whereas on the downside, the bears may pick up momentum on a strong close below 10,500, said Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory, Chartviewindia.
“It is looking like a directionless market, and for the time being, traders should focus on stock-specific opportunities on both directions until Nifty registers a The stock has traded in a rectangle formation for all of 2018 so far. A couple of signals have emerged, which point towards likely upward move in prices. The RS Line against Nifty Infra index has remained in an upward rising channel and has broken out of that as well. Against the broader CNX500 index too, the RS Line has broken out of a formation giving a strong move. Both of the RS Lines presently remain above its 50-week moving average which can be seen as a confirmation of the present set up. The PPO (Price Oscillator) has turned positive. The weekly RSI is also seen breaking out of a pattern while marking a bullish divergence against the price. Full stochastic has just bounced back from the oversold area. Resumption of an uptrend on the counter cannot be ruled out over coming days.
After marking a high around Rs 102, this stock has remained in a corrective decline. Though it slipped below the 50-week moving average (WMA), it is seen attempting to form a base in the Rs 67-72 area. The RS Line, when compared against the broader CNX500, is moving up again and is also seen crossing its 50-WMA, which can be seen as a confirmation, PPO has flattened its trajectory and is seen moving towards getting positive. The weekly MACD, too, is likely to report positive crossover in the coming days. A fresh buy signal is seen on weekly stochastic. Some upward revision in price in this stock cannot over the coming days be ruled out.
This counter appears to have registered a sustainable breakout above its 100-Day Moving Average which acted as a resistance in the past by thwarting the pullback rallies. With consecutive positive closes, it looks ripe for a decent pullback with targets placed around Rs 210. Hence, positional traders are advised to buy into this counter for a target of Rs 210 with a stop loss below Rs 174 on a closing basis.
For quite some time 100-day moving average acted as a supply point to this scrip which this counter appears to have successfully absorbed. With new swing highs in this pullback phase and a decent base around Rs 360 level, this counter appears to be gaining momentum. In such a scenario, we expect it to reach its target of Rs 447 level over time. Hence, positional traders should buy into this with a stop below Rs 360 on a closing basis.
This counter is looking ripe for a breakout as volumes are picking up as it is moving towards its higher of the consolidation zone Rs 185-192 levels. Hence, on such a breakout it can swiftly move towards its initial target of Rs 203 level. In anticipation of a breakout, positional traders shall buy at current prices and add further if available around Rs 187 level with a stop loss below Rs 184 on a closing basis.
This stock has taken off its weekly trendline resistance with a buy crossover in its momentum indicator MACD. The stock has started it Wave 5 up and it is expected to achieve minimum equality target of Rs 855 on the upside. On the lower side, Rs 797 is an immediate support, hence with that as a stop loss we recommend buying this stock.
This stock has provided a breakout from a falling wedge pattern and with that, it seems to have completed five waves declining structure. The momentum, indicator MACD has provided a buy crossover on the daily chart with a positive divergence whereas on the weekly chart the stock has provided a positive close, hence a 38.2% retracement of the entire fall is expected, so we recommend buying this stock.
This stock has formed multi bottoms on the daily charts. It has also closed in the positive territory in the last week after six consecutive positive closes. A minimum of 38.2% retracement of the entire fall is expected which comes to Rs 347.70. On the lower side Rs 308 is a crucial support hence that should be the stop loss on a closing basis. The momentum indicator MACD has also provided a buy crossover on the daily charts whereas on the hourly charts it has provided a buy crossover with a positive divergence thus supporting the short-term uptrend.
On the hourly chart, it seems that the stock is on a verge to give a breakout of its Inverse Head and Shoulder formation, which is a bullish reversal pattern and indicates an upside movement in the counter. Daily momentum indicator RSI has formed a positive divergence which points out for a positive breath in the stock.
This stock has been trading above its 21-day moving average, which is placed at Rs 496 level, indicating a positive trend in the stock. On a smaller time frame, the stock has given a breakout of its range-bound movement with above average volume which indicates a robust upside movement.
breakout on either side,” he said.