By Rohan Patil
Nifty 50, the benchmark index, on the weekly chart has fashioned a bearish night star candlestick sample and has drifted under 17500 ranges with a lack of multiple and a half per cent. From the second week of October 21, momentum oscillator RSI (14) is studying in a decrease low decrease excessive formation on the weekly timeframe indicating an absence of momentum within the present pattern.
MACD indicator has given an early reversal sign on the every day chart by crossing under its sign line on the every day scale. The greater excessive greater low formation on the Nifty will probably be uncared for if costs closed under 17300 ranges.
India VIX on the every day timeframe continues to settle under 21- DMA and additionally it is positioned under 20 ranges within the final couple of days. A VIX index drifting decrease is unquestionably signal for the merchants as will probably be much less volatility and a steady transfer. After final week’s shut, on the decrease finish, assist is seen at 17300 – 17150 whereas resistance is seen at 17,850-17,950.
BANK NIFTY
It was a slim vary truncated week for the Bank Nifty the place we acquired solely three buying and selling classes and costs witnessed very slim vary motion amid volatility. Chart-wise we’ve got not seen a lot technical progress on the weekly timeframe the place it simply closed marginally under its earlier week’s candles.
For the whole week, costs proceed to commerce above their 21–day exponential transferring common which is positioned at 36921 ranges. Currently, costs on the weekly chart have halted close to the resistance of a downward sloping pattern line.
The momentum oscillator RSI (14) has given a horizontal pattern line breakout above 55 ranges and the indicator has retested on this current throwback close to its pattern line assist.
The instant assist for the Bank Nifty is positioned close to its 21 DMA which is positioned at 36900 ranges and the higher band of the index is capped at 38700 ranges if the Banking index is closed above the stated ranges then the gate for the costs is open until 39400 ranges.
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From the final one and half months costs have fashioned a basing formation and when it comes to traditional technical inventory has fashioned a bullish cup & deal with sample on the every day interval.
On the fifth April costs have given a decisive breakout above its pattern line resistance which can be a breakout of a cup and deal with sample at 470.15 ranges. The breakout was adopted by an above common quantity and costs efficiently closed above its 21- day exponential transferring common on the every day timeframe.
The majority of indicators and oscillators are additionally in bullish vary shift mode and studying above its line of polarity.
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After forming a bullish ABCD harmonic sample on the every day chart costs consolidated in a triangle sample for greater than a month and traded inside a really slim vary. On April 5 costs have given a decisive breakout above its pattern line resistance which can be a breakout of a triangle sample at 802 ranges with above common volumes.
On the broader timeframe costs have additionally given a breakout above their five-week excessive and RSI (14) has proven a pointy bounce again from oversold ranges with optimistic crossover.
(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”