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

The equity markets took a corrective turn after extending some gains over the previous close and ended the day with a net loss of 208.30 points or 1.23%. In the process, a large black body emerged which reflected the directional consensus of the market participants; apart from this, no other formations were observed. Meaningful upsides will occur only after NIFTY moves past 16900-17000 levels convincingly.

GODREJPROP

In broader terms, the realty space has been relatively underperforming the broader markets. The Realty index is languishing inside the lagging quadrant of the RRG. When it comes to relative underperformance, GODREJPROP is no exception as it enjoys major weight in the realty index. After being in the correction mode from 2500 levels, the stock has stayed in the falling channel. It has formed a potential base for itself as it has shown some signs of a possible reversal. The stock has rolled inside the improving quadrant of the RRG. While MACD stays in continuing buy mode, RSI has shown a bullish divergence against the price. If the stock sees some technical pullback on the expected lines, it may test 1500-1535 levels. Any close below 1420 will negate this view.

LT

The Infrastructure index is not too far away from the centre point when plotted on the RRG. However, the trajectory of the tail shows the group moving towards the leading quadrant. LT has been under some corrective move; in the process, it has slipped below all the key moving averages. The recent pullback has seen the stock attempting to crawl above the 200-DMA. The MACD has shown a positive crossover; it is now bullish and above the signal line. RSI has marked a new 14-period high which is bullish. PSAR shows a fresh buy signal as well.

The continued technical pullback may the stock to test the levels of 1780-1820 over the coming days. Any close below 1700 will negate the view.