Chart Busters: Top trading set-ups to watch out on Wednesday

Chart Busters: Top trading set-ups to watch out on Wednesday

by 5paisa Research Team Last Updated: Apr 04, 2022 - 12:20 pm 48.1k Views
Listen icon

On Tuesday, the benchmark index Nifty has gained 143 points or 0.79%. The index has closed at the 18268.40 level. The price action has formed a small body bullish candle. Interestingly, the daily RSI has taken support near the 60 mark and started rising higher. This is a bullish sign as per the RSI range shift rules. The Nifty Midcap 100 and Nifty Smallcap 100 has outperformed the benchmark indices on Tuesday. The advance-decline ratio was in the favour of advancers.

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

Aptech: The major trend of the stock is bullish as it is marking the sequence of higher tops and higher bottoms on the daily chart. Further, it is trading above its short and long-term moving averages. These averages are in a rising trajectory, which is a bullish sign. After registering the high of Rs 325.50, the stock was traded in a narrow range along with low volume. Due to the narrow range, the Bollinger band has been contracted significantly, which is an early sign of the explosive move. On Tuesday, the stock has given consolidation breakout on the daily chart. This breakout was supported by a robust volume of more than three times of 50-days average volume. This indicates strong buying interest by market participants. In addition, the stock has formed a sizeable bullish candle on breakout day, which adds strength to the breakout.

The momentum indicators and oscillators are also suggesting further bullish momentum. The leading indicator, 14-period daily RSI is in a bullish trajectory and it is in rising mode. Currently, the RSI is quoting at 70.91 level. The weekly RSI is also in bullish territory. The directional movement index is also at a strong point. The ADX is at 24.86 and +DI is above the –DI on the daily time frame. On the weekly time frame, ADX is above 40 and +DI is above the – DI which indicates the trend is up.

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 level of Rs 360 will act as strong resistance for the stock. While on the downside, Tuesday’s low of Rs 305.40 will act as strong support for the stock.

Jagsonpal Pharmaceuticals: The stock has formed a Spinning top like candlestick pattern as of August 03, 2021, and thereafter witnessed correction. The correction is arrested near its 61.8 per cent Fibonacci retracement level of its prior upward move (Rs 96.35-Rs 203.90 level). On Tuesday, the stock has given a 29-days consolidation breakout on the daily chart. This breakout was supported by robust volume. Further, the stock has formed an opening bullish marubozu candlestick pattern on breakout day, which indicates extreme bullishness.

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 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 daily MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in upside momentum.

Based on the above observations, we expect the stock to continue its upward movement and test levels of Rs 188 followed by Rs 203 in the short term. On the downside, the 20-day EMA will act as strong support for the stock, which is currently quoting at Rs 158.90 level.

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.