Chart Busters: Top trading set-ups to watch out for Thursday

NIFTY resists to 50-DMA levels.

The equity markets witnessed a range-bound session as they traded within a capped range while resisting the key resistance levels. The headline ended the day with a nominal loss of 30.25 points. In the process, despite ending on a negative note, NIFTY has formed a higher top higher bottom on the charts. The markets have resisted exactly at the point where it had maximum Call OI concentration and the 50-DMA as well. The zone of 17500-17650 continues to remain a major resistance area which the markets will have to navigate before extending their up move.

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

ESCORTS

After marking a high point near 1890, ESCORTS have been showing a lot of strength. Over the last several weeks, the stock is giving absolute relative outperformance and has remained unruffled to the market volatility. Currently, though the stock continues to remain under consolidation, it has shown a potential to resume the up move. The daily MACD has shown a positive crossover; it is now bullish and above the signal line. The RSI has marked a new 14-period high; it also shows bullish divergence against the price. If the stock stays above 1800 levels, it has the potential to test the levels of 1900 and 1930 on the higher side.

GODREJPROP

GODREJPROP has shown a significant correction from the highs of 2600. Presently it is seen taking at a strong pattern support area that exists between 1550-1600 levels. The most recent price action has come along with a strong bullish divergence of the RSI against the price. The MACD is on the cusp of the positive crossover, the volumes are heavy and above the 25-day average on the up-moving days. There is a fresh PSAR buy signal; the stock remains in the lagging quadrant of the RRG but shows strong improvement in the relative momentum. The technical pullback may cause the stock to test 1650-1675 levels over the coming days. Any close below 1520 will negate this view.

Also read: Five automobile stocks to keep an eye on today!