Chart Busters: Top trading set-ups to watch out for Monday
NIFTY reinforces 20-DMA as its immediate resistance.
On a disappointing day of trade, the NIFTY closed on a negative note losing 231.10 or 1.31%. The markets suffered a gap-down opening; though it defended the opening lows, there was no meaningful recovery that took place. In the process, the NIFTY has resisted the 20-DMA and has formed a lower top lower bottom on the charts. The zone of 17600-17650 now becomes a major resistance zone for the NIFTY; there will be no sustainable move on the upside unless the NIFTY takes out these levels convincingly.
The stock has been consolidating in a sideways trajectory; it has shown multiple pieces of evidence that hint at a likely upward revision of the price over the coming days. The MACD has shown a positive crossover; it is bullish and above the signal line. The RSI showed a bullish failure swing; it has now marked a new 14-period which with a bullish divergence against the price. The volumes have been higher than the 25-day average; the OBV trades near its high. If the trend turns out the expected lines, the stock may test 445 and 460 levels. Any close below 385 will negate the view.
ONGC has tested a classical double top resistance near 172; it gave an incremental high and since then it has been consolidating in a defined range. A Harami candle has emerged on the charts. The resumption of the price of crude oil may have a positive impact on the stock and we may see the prices trying to break above the double top resistance. The RSI is neutral and does not show any divergence against the price. The RS line against the broader NIFTY 500 index is a firm uptrend and above the 50-DMA. The stock may test 178-183 going ahead from here. Any close below 163 will negate this view.
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