Chart Busters: Top trading set-ups to watch out for on Monday.

Chart Busters: Top trading set-ups to watch out for on Monday.

by 5paisa Research Team Last Updated: Dec 14, 2022 - 11:05 pm 49.4k Views
Listen icon

The benchmark index Nifty has marked a fresh all time high of 18350.75 level. In the last four trading sessions, the index has gained 443.35 points or 2.47%. On Thursday, barring the Nifty Auto index, all other sectoral indices have ended in positive. The Nifty Midcap 100 and Nifty Smallcap 100 has also marked the fresh all time high. From the Nifty 500 space, almost 65 stocks have marked a 52-week high.

Here are the top trading set-ups to watch out for on Monday.

Alkali Metals: The stock has formed a hammer candlestick pattern as of September 22, 2021, and thereafter witnessed a nearly 63% upward journey in just 9 trading sessions. However, after registering the high of Rs 111.70, the stock has witnessed correction. During the period of correction, the volume activity was mostly below the 50-days average volume. Hence, it should be viewed as a routine decline after a robust move. The correction is arrested near 50% Fibonacci retracement level of its prior upward move. On Thursday, the stock has taken support near the 13-day EMA level and resumed its upward journey.

The 14-period RSI on the daily timeframe is in bullish territory and it has given positive crossover on Thursday. Furthermore, in the recent corrective phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per RSI range shift rules. The MACD is above the zero line and signal line on the daily chart. The MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the upside, the prior high of Rs 111.70 will act as minor resistance for the stock. While on the downside, the zone of Rs 90-Rs 88 will act as a strong support zone for stock as it is the confluence of swing low and 13-day EMA level.

Indiabulls Real Estate: Considering the daily chart, the stock has given a breakout of a downward sloping trendline resistance on Thursday. With this trendline breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. Further, this breakout was supported by above 50-days average volume. In addition, the stock has formed a sizeable bullish candle on breakout day, which adds strength to the breakout. 

Currently, the stock is trading above its short and long-term moving averages. These averages are in rising mode. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its prior swing high. The MACD stays bullish as it is trading above its zero line and signal line.

Based on the above observations, we expect the stock to continue its upward movement. The prior swing high of Rs 174.75 will act as minor resistance for stock and on the downside, the zone of Rs 152-149 is likely to act as strong support for the stock.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.