Market Trading Guide: Asian Paints among 7 stock recommendations for Monday - Market Trading Guide: Asian ... - Economic Times
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Market Trading Guide: Asian Paints among 7 stock recommendations for Monday
“The short term trend of Nifty remains weak and there is a possibility of some more weakness in the coming week. A decisive break below 17600-17550 levels could open sharp decline for the market. Immediate resistance is at 17700 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
strength. The price has been consolidating just above the High Volume Zone indicating Bullish strength. The RSI (14) on the daily chart has climbed above 58 marks confirming a bullish trend in the near future.
(Mahesh Prakot, Research Analyst, Bonanza Portfolio)
Indian equities tracking muted global cues ended flat with a positive bias. On a weekly basis, Nifty lost over 1% and managed to hold levels of 17,600. Sectorally, Nifty Media and Nifty FMCG were the outliers in trade on Friday.
On a weekly chart, the price has been rising continuously with Higher Highs and Higher
Lows formation. Recently, the counter has reversed from the lower Bollinger Band with Bullish Pin bar candlesticks indicating bullish strength. At the same time, the Accumulation/Distribution indicator is also supportive to the next bullish rally.
After a long bullish rally, the price has been trading in a sideways trend from the last few weeks with decreasing volume which indicates accumulation for the next rally. The price has been consolidating just above the High Volume Zone indicating Bullish
The stock has recorded its fifth winning streak in a row on the weekly timeframe. It has moved above the previous consolidation, suggesting a rise in optimism in the stock. The momentum oscillator is also indicating strong momentum in the price. Over the short term, the stock may move towards Rs 444. On the lower end, support is visible at Rs 394, below which the stock is likely to fall into a decline.
The stock has slipped below the recent consolidation on the daily chart. Besides, the price has fallen below the critical short-term moving average on the daily timeframe. The oscillator RSI is in a bearish crossover and is falling. Over the short term, the stock is likely to fall towards 133/130. On the higher end, resistance is visible at 139.
Post decline from the higher levels, the stock has formed a double bottom chart pattern. The bullish activity near the support zone indicates that the counter has limited downside. Hence making it a good candidate with regards to the risk and reward scenario. Therefore, the texture of the chart suggests a fresh upward rally.
The counter has shown a robust rally from the lower levels in the recent weeks. Additionally, it is continuously trading in an ascending triangle chart formation along with decent volume activity. Therefore, the overall formation indicates a likely breakout for a new leg of up move from the current levels. ( Shrikant Chouhan, Head of Equity Research ( Retail), Kotak Securities)
After the short-term correction, reversal is seen in the counter on the daily charts. The counter is witnessing a steady recovery from the lower levels. Moreover, it has formed a rising channel chart pattern. The gradual up moves in the counter suggest the bullish trend to persist in the near term.
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