Chart Busters:Top trading set-ups to watch out for on Tuesday.
On the first trading session of the week, the benchmark index Nifty has marked a fresh all-time high of 18041.95 level. However, the index has cooled off from the day's high and ended the session at a 17945.95 level with a gain of 50.75 points or 0.28%. The broader market has outperformed the benchmark indices. The advance-decline ratio was in the favour of advancers.
Here are the top trading set-ups to watch out for on Tuesday.
Minda Corporation: After registering the high of Rs 148.10, the stock has witnessed correction. The correction is halted near the 61.8% Fibonacci retracement level of its prior upward move and it coincides with the 200-week EMA level. These averages are in a rising trajectory. Since the last 45 trading sessions, the stock is oscillating in a narrow range, which resulted in the formation of ascending triangle pattern. On Monday, the stock has given a breakout of ascending triangle pattern on the daily chart. This breakout was backed by strong 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 has surged above the 60 mark, which is a bullish sign. The weekly RSI has given positive crossover. On the daily timeframe, ADX is 10.35 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI.
Going ahead, as per the measure rule of ascending triangle pattern, the first target is placed at Rs 157, followed by Rs 163 level. On the downside, the 20-day EMA is likely to act as strong support for the stock.
Endurance Technologies: Considering the weekly scale, the stock is trading in a rising channel for the last 58 weeks. In the last three weeks, the stock has formed a strong base near the supply line of the rising channel (logarithmic scale). On Monday, the stock has given the base pattern breakout on the daily chart. This breakout was confirmed by the above 50-day average volume.
Talking about moving averages, the stock has recently surged above its short and long-term moving averages. These averages are in rising mode. 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 the 60 mark and above its prior swing high. The daily MACD stays bullish as it is trading above its zero line and signal line. Moreover, the +DI has surged above the ADX on the daily chart which suggests that the trend will strengthen further.
Going ahead, the prior swing high of Rs 1750, followed by Rs 1830 is likely to act as resistance for the stock. While on the downside, the zone of Rs 1574-Rs 1550 will act as crucial support for the stock as it is the confluence of 100-day EMA, demand line of the rising channel and prior swing low.
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