Nifty 17469.75 (1.71%)
Sensex 58649.68 (1.76%)
Nifty Bank 37284.7 (1.82%)
Nifty IT 35959.05 (1.95%)
Nifty Financial Services 18284.95 (1.70%)
Adani Ports 761.40 (2.24%)
Asian Paints 3108.50 (2.58%)
Axis Bank 697.10 (1.47%)
B P C L 391.15 (0.86%)
Bajaj Auto 3332.05 (1.39%)
Bajaj Finance 7361.50 (3.64%)
Bajaj Finserv 17621.65 (3.00%)
Bharti Airtel 715.15 (2.33%)
Britannia Inds. 3575.75 (2.92%)
Cipla 897.95 (0.98%)
Coal India 150.90 (0.17%)
Divis Lab. 4604.95 (-0.43%)
Dr Reddys Labs 4570.70 (1.11%)
Eicher Motors 2505.55 (1.37%)
Grasim Inds 1716.25 (1.82%)
H D F C 2853.00 (1.26%)
HCL Technologies 1171.60 (1.91%)
HDFC Bank 1553.80 (1.84%)
HDFC Life Insur. 686.40 (-1.15%)
Hero Motocorp 2490.65 (1.17%)
Hind. Unilever 2340.60 (0.82%)
Hindalco Inds. 457.45 (3.38%)
I O C L 120.40 (-0.17%)
ICICI Bank 753.40 (2.55%)
IndusInd Bank 945.30 (2.01%)
Infosys 1753.35 (2.44%)
ITC 224.95 (1.95%)
JSW Steel 672.95 (1.86%)
Kotak Mah. Bank 1920.45 (-0.86%)
Larsen & Toubro 1825.05 (1.50%)
M & M 840.75 (1.79%)
Maruti Suzuki 7434.90 (3.46%)
Nestle India 19479.10 (0.70%)
NTPC 127.25 (1.52%)
O N G C 148.40 (1.71%)
Power Grid Corpn 204.80 (-0.49%)
Reliance Industr 2418.10 (1.52%)
SBI Life Insuran 1169.50 (0.89%)
Shree Cement 26106.90 (1.40%)
St Bk of India 491.55 (3.12%)
Sun Pharma.Inds. 757.55 (1.86%)
Tata Consumer 772.15 (1.51%)
Tata Motors 493.90 (2.51%)
Tata Steel 1173.00 (2.11%)
TCS 3626.90 (1.18%)
Tech Mahindra 1604.80 (1.79%)
Titan Company 2405.55 (1.05%)
UltraTech Cem. 7423.95 (1.71%)
UPL 728.10 (0.16%)
Wipro 641.70 (1.47%)
Chart Busters: Top trading set-ups to watch out for on Monday
by 5paisa Research Team 25/10/2021

The benchmark index, Nifty has continued its downward journey for the fourth consecutive trading session. On Friday, the Nifty has lost 63.20 points or 0.35%. On the weekly chart, the index has formed a sizeable bearish candle. The weekly RSI has given a bearish crossover. The banking benchmark index, Bank Nifty has outperformed the Nifty index on Friday and marked the high of 40587.35 level. However, from the higher level, the Bank nifty has slipped by over 260 points, which resulted in the formation of a shooting star candlestick pattern on the daily chart. 

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

IFB Industries:The stock has formed a spinning top like candlestick pattern as of September 24 and thereafter witnessed consolidation. During the consolidation, the stock has formed a symmetrical triangle pattern on the daily chart. Due to the narrow range, the Bollinger band has been contracted significantly, which is an early sign of the explosive move. On Friday, the stock has given a breakout of symmetrical triangle pattern on the daily chart. Further, on breakout day the volume was expanded by 8 times of 50-days average volume, which indicates important buying interest. The 50-days average volume was 1.09 lakh while today the stock has registered a total volume of 8.79 lakh. In addition, the stock has formed an opening bullish marubozu candlestick pattern on breakout day, which indicates extreme bullishness.

Currently, the stock is trading above its short and long-term moving averages. These averages are in a rising trajectory. The leading indicator, 14-period daily RSI has given positive crossover on the daily chart and it is in rising mode. The ADX is very strong at 34.47. The -DI is below the +DI and ADX is above the -DI and +DI. This shows the technical strength in the stock. Moreover, the surge in +DI is suggesting that the trend will strengthen further.

In a nutshell, the stock has registered a bullish pattern breakout along with volume confirmation. On the upside, the level of Rs 1408 will act as resistance for the stock. While on the downside, the zone of Rs 1185-1180 will act as strong support for the stock.

Sterlite Technologies:Considering the daily chart, the stock has formed a bullish engulfing candlestick pattern as of August 24, 2021, and thereafter marked the sequence of higher tops and higher bottoms. After registering the high of Rs 299.35, the stock has witnessed minor correction along with low volume. The correction is halted near the 50% Fibonacci retracement level of its prior upward move. The stock has formed a strong base near the 100-day EMA level and on Friday, it has given a 13-days consolidation breakout. This breakout was confirmed by robust volume. In addition, the stock has formed a strong bullish candle. The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong.

Talking about the indicators, the 14-period RSI on the daily time frame has marked a fresh 14-period high and also, the RSI has surged above its prior swing high. Interestingly, the weekly RSI has taken support near the 60 mark and started rising. This indicates a super bullish range shift as per the RSI range shift rules. The fast stochastic is also trading above its slow stochastic line, which is a bullish sign.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. The prior swing high of Rs 318 will act as resistance for the stock. While on the downside, the Friday low of Rs 277 will act as strong support for the stock.

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