Chart Busters: Top trading set-ups to watch for Friday

NIFTY had a session that is typical to any weekly options expiry day; it traded in a defined range and ended flat with a negligible loss of 17.60 points. In the process, it has formed almost a parallel bar with near similar top and bottom. The NIFTY has continued to resist the 50-DMA which presently stands at 17465. Followed by the 100-DMA at 17623, this makes the zone of 17450-17650 a major resistance area for the NIFTY. For Friday, expect the markets to continue trading in a capped range; with a negative opening likely, there are possibilities of the NIFTY testing the falling pattern trend line support once again. Not much directional action is expected during the day

ONGC

Crude Oil is consolidating near its multi-year high point; however, ONGC has been a bit late in playing a catch up to the rise in crude price. Coming to the technical perspective, the stock made a double top near 173 and it has been consolidating near this point while forming a trading range for itself. The daily MACD is bearish and trades below the signal line. However, the narrowing slope of the histogram hints at a likely positive crossover in the coming days. The OBV – On Balance Volume has marked a new high head of the actual price breakout which is a bullish sign. While the volumes have stayed above the 25-day average, the RSI is also seen moving higher from a pattern resistance. The stock may test 175-178 in the short term; any close below 165 will negate this view.

HINDUNILVR

Along with other consumption stocks, HINDUNILVR was also relatively underperforming the broader markets. It had been under corrective decline ever since it tested the high near 2850 levels. It is seen marking classical double bottom support near 2200 and appears to be attempting to reverse the trend. The stock which is in the improving quadrant of the RRG is on the verge of rolling inside the leading quadrant. The RS line against the broader NIFTY500 index is changing its trajectory for the upside; it has crossed above the 50-DMA. MACD has shown a bullish crossover; PSAR shows a fresh buy signal. The stock may test 2350-2390 levels if it is able to sustain above 2240.

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