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

The Nifty index has formed a hammer like candlestick pattern on the daily chart and going forward, as long as the low of 16,888 is protected, the index might consolidate. Now, the 50DMA (17123) is likely to act as resistance. The index is now 0.81 per cent below the 50DMA and 2.68 per cent below its 20DMA. The lower time frame charts show higher volatility within the range. Long-legged Doji candles formed on 75 minutes charts in the afternoon session. On a much lower time frame, 15 minutes time frame, the lower highs and lowers lows were formed. The daily MACD line declined below the zero line. The weekly histogram shows a steep increase in bearish momentum. Furthermore, the Nifty closed below the Anchored VWAP support and it is down by 1.81 per cent from its important 20-week moving averages. Just before the expiry, the derivative volume and open interest increased, showing fresh shorts were built up. 

BALRAMCHIN: The stock has broken down the head and shoulders like pattern along with high volume. It closed below the 20DMA and took support at 50DMA. The stock is also below the moving average ribbon. MACD histogram shows a strong bearish momentum. RSI is below the prior lows. The -DMI is above the +DMI and ADX. It closed below the Anchored VWAP support. The Elder impulse system has formed a strong bearish bar. The TSI and KST indicator has been in bearish mode. In short, the stock has broken down a bearish pattern. A move below Rs.459 is negative for the stock, and it can test Rs.434 and Rs.426. Maintain a stop loss at Rs.467.

NAUKRI: The stock has broken the counter-trend consolidation pattern. It closed below the 50DMA and all short-term averages. Narrowed Bollinger bands say there is likely an explosive move on the card. The RSI has broken the crucial support. -DMI is above the +DMI is a negative sign. The MACD has given a fresh sell signal. The Elder impulse system has formed a series of bearish signals. The KST and TSI indicators are also given the sell signals. It closed below the Anchored VWAP. In short, the stock ended its counter-trend rally. A move below Rs.4500 is negative, and it can test Rs.4350. Maintain a stop loss at Rs. 4575. Below Rs.4350, continue with a trailing stop loss.