The level of 9,700-9,720 will be the immediate resistance above which uptrend would confirm and the market will remain upside for over short to medium term.
By Abnish Kumar Sudhanshu
Amrapali Aadya Trading & Investments
The market started the week with a strong bullish movement and witnessed a gap up opening that remained intact throughout the entire session.
The 20-DMA is proving a strong support level for the Nifty while during Monday’ session relative strength index (RSI) has also generated fresh buying signals along with increasing volumes.
The market ended at a high of six days and attracting new buyers into the market. Levels of 9,550 will remain a very strong support to the downside where only a close below could bring more selling pressure.
A trend reversal can be expected thereafter but it seems that bulls are taking gradual control of the market here. The level of 9,700-9,720 will be the immediate resistance above which uptrend would confirm and the market will remain upside for over short to medium term.
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The 20-DMA has proven a strong support level for the stock in the recent few sessions along with that the counter managed to close well above 50-DMA in Monday’s session. The bullish candle on the daily chart and crossover in RSI and MACD are supporting more upside is highly likely for the stock.
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The stock has witnessed fresh upside breakout after a recent consolidation by constantly making higher highs and higher lows.
The short-to-medium term indicators along with Parabilic SAR which indicates medium-term movement are in favour of stock to move further higher.
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The chart has gained momentum during the intraday session on Monday and closed with a positive candle on the daily chart.
Prices are well supported by 20-DMA along with rising RSI and MACD which also hints bulls to remain intact and more upside can be expected from the present levels.
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The stock has witnessed gap up opening on Monday’s trading session attracting more buyers and maintained its uptrend throughout the session.
A fresh upside breakout has seen on the daily charts which is likely to remain intact over short to medium term.
Talking about the momentum indicators, 20 DAM is providing very strong support as the counter has just reverted back in the earlier session along with that RSI and MACD both have generated fresh crossovers supporting more upside.
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The stock has gained momentum during the intraday session and reached to its resistance level which is likely to give a breakout on the higher side as most of the momentum indicators are in favor of northwards move to remain intact.
The daily chart is making an inverted head and shoulder kind of a situation at present which is a bullish sign and a cross above neckline near Rs213.50 would confirm its formation and more upside can be expected.Disclaimer: The author is Director & Research Head, Amrapali Aadya Trading & Investments. The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.