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 Tuesday
by 5paisa Research Team 23/11/2021

On the first trading session of the week, the Indian market has witnessed a fierce sell-off as the benchmark index Nifty has tumbled by nearly 2%. The Nifty Midcap 100 and Nifty Smallcap 100 as underperformed benchmark indices. The overall advance-decline was tilted in the favour of the decliners. The Indian Volatility Index (VIX), a gauge for the market’s short-term expectation of volatility, surged by nearly 18% to end at a 17.52 level.

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

Elecon Engineering Co: The stock has formed a Hammer candlestick pattern on the last week of March 2020 and thereafter marked the sequence of higher tops and higher bottoms. From the low of Rs 16.20, the stock has gained over 1100% in just 87 weeks.

On Monday, the stock has marked a fresh 52-week high along with robust volume. Also, the stock has relatively outperformed the frontline indices on Monday. The Relative strength comparison with Nifty 500 and Nifty 50 has also marked higher tops and higher bottoms. As the stock is trading at a 52-week high, all the moving averages based on trade set-ups are showing a bullish strength in the stock. The stock is meeting Mark Minervini’s as well as Daryl Guppy’s multiple moving averages rules. These two set-ups are giving a clear uptrend picture in the stock.

Interestingly, the leading indicator, 14-period daily RSI has given a downward sloping trendline breakout, which is a bullish sign. The daily RSI is currently quoting at 72.70 and it is in rising mode. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting a pickup in upside momentum. 

Considering the robust technical structure of the stock we believe it is likely to continue its upward journey. On the downside, the 20-day EMA is likely to provide the cushion in case of any immediate decline. The 20-day EMA is currently placed at Rs 171.10 level.

Tata Chemicals: The stock has formed a Gravestone Doji pattern as of October 18, 2021, and thereafter witnessed a correction of over 24% in just 10 trading sessions. After registering the low of Rs 876.50, the stock has witnessed counter-trend consolidation for 14 trading sessions, which resulted in the formation of a Bearish Flag pattern.

On Monday, the stock has given a breakdown of a Bearish Flag pattern on the daily chart along with relatively higher volume. Additionally, the stock has formed a sizeable bearish candle on breakout day. Currently, the stock is trading below its short-term moving averages, i.e. 20-day EMA and 50-day EMA levels. These moving averages are edging lower. The leading indicator, RSI is currently quoting 40.30 and it is in falling mode. The fast stochastic is also trading below its slow stochastic line.

Technically, all the factors are currently aligned in support of the bears. Hence, we would advise the traders to be with a bearish bias. Any sustainable move below its 100-day EMA level will lead to a sharp downside move in the stock. The 100-day EMA is currently placed at Rs 871.05 level.

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