“The stock has strong support in the Rs 345-340 area, indicating a potential buying opportunity if the stock retraces to this level. Given the breakout and support levels, it is possible that the stock will continue to rise. Traders and investors could look for potential price targets around Rs 400 or even Rs 430 as the stock continues its upward trajectory,” Shah says.
Edited excerpts from an interview:
Clever the bulls had a fever at 20,000 points. Do the charts indicate that the milestone is likely to be reached next week if IT actions not play spoilsport?
During the trading period, the Nifty index fell short of the significant milestone of 20000 by only 9 points and experienced a sharp correction, mainly due to the decline in IT stocks. The correction resulted in a noticeable drop in the value of the index, indicating bearish sentiment in the market.
The Nifty Index price chart displayed a Doji candle pattern, often interpreted as a sign of indecision among traders. The Doji candle indicates that the open and close prices of the index were very close or almost the same, creating a small-bodied candle with long upper and lower shadows. This pattern suggests that neither the bulls nor the bears had a clear advantage during the trading session and that the market was in a state of uncertainty.
The direction of the trend remains ambiguous, and a breakout either side of the Doji candle’s range could shed some light on the future market direction. If the index breaks above the resistance level at 18,900, the bulls could regain strength and aim to hit the 20,000 mark. On the other hand, a break below a certain level of support could signify a continuation of the downtrend.
How should one trade Clever bank, who was the best performer of the week? Will he edge out Nifty again?
The continued outperformance of the index risks stalling if it breaks below the strong support level at 45500. This support level has been crucial in preventing further downward moves, but a break below could signal a potential shift in market sentiment.
Currently, the index is facing immediate resistance at the 46,300-46,400 levels. Breaking through this resistance would once again give the bulls an edge and could potentially lead to further upward moves in the index.
What do the charts look like for IT stocks such as Infosys And HCL Technician?
Infosys faces strong upside resistance in the 1360-1400 area, and traders are advised to consider using any rally in this range to initiate new short positions. This suggests that the stock price has struggled to rise significantly beyond this zone, potentially indicating a bearish outlook.
In contrast, immediate support for Infosys is 1300. A break below this support level could intensify selling pressure and lead to further downward moves in the stock price.
In the meantime, HCL Technologies (HCLT) is trying to find support in the 1100-1080 area. If the stock manages to hold above this support level, it could potentially lead to a rally higher towards the 1160-1180 levels.
However, a break below the mentioned support zone for HCLT, especially at the close, would give the bears the upper hand and could lead to additional selling pressure.
Sterling and Wilson Renewables rallied about 27% over the week. How to trade the stock now?
A significant development occurred in the stock as it saw a break above a declining trendline. This breakout was accompanied by a sharp increase in trading volumes, suggesting a potential change in the stock’s trend.
Given the recent breakout and trend change, an ideal approach for traders might be to consider buying on dips. The stock has strong support in the 345-340 area, indicating a potential buying opportunity if the stock retraces to this level.
Given the breakout and support levels, it is possible that the stock will continue to rise. Traders and investors could look for potential price targets around 400 or even 430 levels as the stock continues its upward trajectory.
With the key events of the split and its outcome behind us, what does RIL NOW?
Following the split, the stock experienced a significant correction and is currently trading near a crucial support zone at 2500. This support level is critical as it has the potential to act as a turning point for the price movement of the stock.
Despite the correction, the stock remains in buy mode around support levels, suggesting that investors might consider initiating long positions at this stage. The support zone at 2500 could lead to a rebound higher, with potential price targets around 2650 or even 2700 levels.
The momentum indicator, RSI, is currently trading in oversold territory. An oversold RSI often indicates that the stock has been oversold, which can lead to a price reversal. This oversold condition could give the stock the momentum to initiate a rally from the current support levels.
Give us your top 3-4 trading ideas for the week.
BUY Gaelle AT 111, SL-106, TGT 120/124
GAIL has witnessed strong buying interest around the 106 level, which acts as support for the stock. This level has held in the past, indicating potential buyer demand at this price. The stock is currently approaching a downtrend line, and a break above that trendline could accelerate the stock’s upward momentum. A breakout of the trendline is often seen as a bullish signal, suggesting a potential reversal in the price movement of the action. Additionally, a morning star pattern has formed at the support level, further confirming the bullish structure. The Morning Star pattern is a three candlestick pattern, consisting of a large bearish candle, followed by a small candle indicating indecision, and then a large bullish candle. This pattern indicates a potential trend reversal from bearish to bullish.
BUY COROMANDEL AT 975, SL-940 TGT 1030/1050
The stock recently experienced a significant breakout after a consolidation phase on the daily and weekly charts. The breakout was accompanied by an increase in trading volumes, indicating strong buying interest in the stock. The momentum indicator, RSI, gave a positive cross, confirming the presence of bullish momentum in the stock. Additionally, there was a break of a downtrend line, signaling a change in momentum from bearish to bullish. This break reinforces the bullish scenario of the title. The stock has a strong support level at 940, which acts as a cushion for the bulls. As long as the stock remains above this support level, the uptrend should continue.
BUY BEML AT 1685, SL-1634, TGT-1775/1800
The stock recently experienced a consolidation break on its daily chart and remained above a crucial moving average. Additionally, the RSI indicator shows a bullish crossover. However, there seems to be resistance at the 1800 level, while support can be seen at 1634
