By Rohan Patil
Nifty 50 continued its bearish pattern final week and the sell-on-rise technique was legitimate for the whole week. Prices drift for a second consecutive week with a fall of greater than three and a half per cent. Nifty has fallen nearly 15 per cent within the final six weeks from 18110 to 15780 ranges. The Benchmark index has shaped a double backside sample on the every day chart and the momentum oscillator RSI (14) has additionally drifted close to its oversold (under 30) with a bearish crossover. Prices continued to commerce under their (21, 50 & 100) and days exponential shifting averages on the every day timeframe.
Prices have made a Bullish bat harmonic sample close to 16100 ranges however finally failed with a powerful selloff. Normally in technical evaluation at any time when a bullish sample fails we see a powerful bearish pattern continuation for that restricted interval.
The sharp and instantaneous bounce again at present ranges can’t be dominated out as a result of oversold situation within the majority of the indications. The fast assist for the Nifty is positioned close to 15650 – 15500 ranges and the higher band of the index is capped at 16200 ranges if the index is closed above the stated ranges then the gate for the costs is open until 16400 ranges.
Bank Nifty assist at 33100
Bank Nifty is buying and selling in a decrease excessive decrease low formation and the 2 continuation hole created on the every day timeframe continues to be unfilled indicating a powerful bearish pattern.
The Bank Nifty is buying and selling under all its vital averages (21, 50, 100) on the every day timeframe and the hole between the closest shifting common and value is getting widened up which signifies a chance of a brief time period spurt within the costs.
The oscillator on the every day chart has drifted under the oversold ranges whereas on the weekly chart oscillator has closed at 38 ranges that are near the oversold terrain. If we draw an upward rising pattern line on the weekly chart then the closest assist for the Bank Nifty is positioned at 33100 ranges and the higher band of the index is almost certainly to capped close to 35000 ranges
Gujarat Gas: BUY
Target: Rs 607 | Stop Loss: Rs 545
Return: 6.70%
After a sequence of decrease excessive decrease low costs consolidated for nearly one month and shaped a basing sample. Prices on the every day chart have given a double backside sample breakout on May 12 at 567 ranges.
In this total bearish market state of affairs, GUJGAS has outperformed the benchmark index on absolutely the foundation within the relative power evaluation. Prices have additionally closed above their 21 & 50-day exponential shifting averages on the every day interval.
The sample breakout is on an enormous enhance in volumes and a wide-ranged candle. Price additionally gapped above the neckline. The RSI (14) has additionally given a horizontal pattern line breakout which is positioned at 50 ranges. Prices are almost certainly to commerce larger on account of these a number of bullish situations.
Coromandel International: BUY
Target: Rs 936 | Stop Loss: Rs 847
Return 06%
Post the pattern line breakout costs consolidated for every week and have accomplished its throwback close to pattern line assist on the every day timeframe.
In these throwback costs have taken assist close to their 21–day exponential shifting common and closed efficiently above the identical. On the broader timeframe too inventory is poised to maneuver larger as it’s outperforming the Benchmark index and witnesses the next excessive larger backside formation.
(Rohan Patil is a Technical Analyst at Bonanza Portfolio. The views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing)
Source: www.financialexpress.com”