Chart Busters: Top trading set-ups to watch out for on Tuesday.
On the first day of the week, the benchmark index Nifty has marked the fresh all-time high of 18543.15 level. On Monday, the index has gained 138.50 points or 0.76%. The index has formed a small body bearish candle, which indicates indecisiveness near the all-time high level. Going ahead, the upside opening gap of 18350-18445 is likely to act as strong support for the index.
Here are the top trading set-ups to watch out for Tuesday.
Aarti Industries: The stock has given a downward sloping trendline breakout as of October 04, 2021, and thereafter witnessed nearly 18% upside in just six trading sessions. After registering the high of Rs 1131.80, the stock has witnessed consolidation for the next three trading sessions. During the consolidation, the volume activity was below the 50-day average volume. Hence it should be viewed as a routine decline after a robust move. On Monday, the stock has given three days of consolidation breakout along with robust volume. All the moving averages based on trade set-ups are showing a bullish strength in the stock. Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. The stock is trading above all the 12 short- and long-term moving averages. The averages are all trending up, and they are in a sequence. The leading indicator, 14-period daily RSI is in the super bullish zone, and it is in rising mode. Considering the robust technical structure of the stock we believe it is likely to touch new highs. On the upside, the level of Rs 1213 will act as minor resistance for the stock. While on the downside, the zone of Rs 1100-Rs 1088 will act as support for the stock.
Rail Vikas Nigam: The stock has formed a doji candlestick pattern as on the weekend of March 27, 2021, and thereafter marked the sequence of higher tops and higher bottoms. After registering the high of Rs 35.55, the stock has entered into the contracting consolidation for 39-weeks. This resulted in the formation of a symmetrical triangle pattern on the weekly chart. On Monday, the stock has given a symmetrical triangle pattern breakout. Interestingly, on the first day of the week, the stock has witnessed nearly 9 times of 50-days average volume. The 50-days average volume is 47.04 lakh while today it has witnessed 4.09 crore volume. This indicates strong buying interest by market participants. Additionally, the stock has formed a strong bullish candle on breakout day. Currently, it is trading above its short and long-term moving averages. These averages have started rising higher, which is a bullish sign. The weekly RSI has surged above the 60 mark for the first time after the second week of July 2021. The weekly and daily RSI is in rising mode. The weekly MACD line just crossed the signal line, and the histogram became green. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. As per the measure rule of the symmetrical triangle pattern, the first target is placed at Rs 41, followed by the Rs 43 level. On the downside, the 20-week EMA is likely to act as strong support for the stock, which is currently placed at the Rs 30.40 level.
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