Chart Busters: Top trading set-ups to watch for Tuesday
While the NIFTY consolidated and resisted the 100-DMA on the expected lines, it ended the day with a net loss of 169.45 points or 0.98%. In the process, a bearish engulfing candle has emerged. The occurrence of such a candle after an up move and near the resistance point of 100-DMA adds credibility to this level as a strong resistance area for the NIFTY in the near term.
The markets are more likely to trade in a defined 17000-17400 zone in the near term; any violation of the 17000 levels will invite weakness in the markets.
ALEMBICLTD has shown some classical signs of reversal; it is likely to show some technical rebound in the coming days. The stock has stayed in a secular downtrend after starting its corrective move from 135 levels. While the stock continued to decline, the OBV remained sideways. The MACD has shown a positive crossover; it stays in continuing buy mode and above its signal line. RSI is neutral; it does not show any divergence against the price but appears to be breaking out from a sideways trajectory. PSAR buy signal has emerged.
If the stock forms a potential bottom and stages a technical pullback, it may test 90-94 levels. Any close below 76 will negate this view.
After peaking out near 370 levels, the stock a technical decline. The recent price action shows a potential bottom in place as the stock presents a swing trade opportunity for the short term. The RSI has shown a strong bullish divergence against the price. While the price formed lower lows, the RSI did not and this resulted in a bullish divergence of the RSI. The increase in the volumes in the final phase of the move also hints at a potential bottom formation. PSAR signal has emerged; the MACD has also shown a positive crossover.
If the stock shows a technical swing on the upside on the expected lines, it may test 280-295 levels. Any close below 250 will negate the view.
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